JAAFSL wants Sri Lanka to move beyond its long-standing $5 billion export plateau through automation, local textile capacity, wider trade access and higher-value manufacturing.
Sri Lanka’s apparel industry has set out a strategy to pursue $8 billion in annual exports, calling for deeper automation, upstream textile investment and preferential market access as competition from larger Asian sourcing hubs intensifies.
The Joint Apparel Association Forum Sri Lanka (JAAFSL) says exports have remained around $5 billion for much of the past five years and argues that the existing growth model has reached its limits. Official Export Development Board data put 2025 apparel export revenue at $5.30 billion, accounting for 40.7% of merchandise export earnings and supporting around 350,000 direct jobs.
Local supply chain needs investment
One major weakness is imported raw-material dependence. JAAFSL says domestic capacity supplies only about one-third of the industry’s synthetic yarn and fabric requirements.
It wants stronger investment incentives for fabric mills, trims and packaging, alongside foreign direct investment and reinvestment by existing manufacturers. Reducing imported-input dependence could shorten lead times, improve responsiveness and retain more textile value addition inside Sri Lanka.
Automation is the second pillar. JAAFSL is calling for accelerated adoption of robotics, AI and advanced manufacturing technologies to raise productivity in an industry that cannot compete with larger sourcing countries purely through labour costs.
Market access becomes critical
The industry also wants Sri Lanka to secure access under the EU’s new GSP+ regime, pursue improved trade arrangements with the United States, deepen its India FTA and open negotiations with markets including Japan, South Korea, Australia and New Zealand.
The urgency is increasing after completion of EU–India FTA negotiations, which could strengthen India’s competitive position in Europe once implemented.
$8 billion requires a different model
JAAFSL’s ambition goes beyond the $7 billion apparel target currently cited by Sri Lanka’s Export Development Board.
Reaching $8 billion from the 2025 base would require roughly 51% export growth. The decisive levers will therefore be productivity, higher-value products, synthetic and performance-textile capability, renewable energy access, faster customs and VAT procedures, and sustained buyer confidence.
Sri Lanka’s next apparel growth phase will depend less on adding sewing capacity and more on moving upstream, automating production and capturing greater value per garment.
