How the cloth is cut

The apparel and textile industry in Sri Lanka has been an integral piece of the country's economy, making for a substantial percentage of the country's GDP and employment. However, the sector has encountered a number of challenges in recent years, spanning from international competition to global economic downturns.

Since its inception in the 1960s, the Sri Lankan apparel and textile business has gone a long way. The industry has progressed from the production of basic cotton textiles to high-end apparel, intimates, and sportswear. 

A highly skilled labour force, technical developments, and favourable Government policies had contributed to the industry's success, mainly in the past. Preferential trade deals with the European Union and the United States have also aided the industry's exports to these areas. 

Despite these developments, the apparel and textile business has encountered a number of challenges in recent years. The intense competition from other producing nations, particularly China, India, Bangladesh, and Vietnam, is one of the main obstacles. 

These nations have a substantial cost edge over Sri Lanka, owing mainly to reduced labour costs, and have taken a significant portion of the global textile market. For example, China alone accounts for more than 40% of worldwide textile and apparel shipments, while Sri Lanka accounts for less than 1%.

Several seasoned players exist in the Sri Lankan apparel and textile business, spanning from small-scale manufacturers to big international corporations. Brandix, MAS Holdings, Hirdaramani Group, and Teejay Lanka are among the industry's main participants. These businesses have made significant investments in technology, creativity, and sustainability, allowing them to stay successful in the global market. 

However, the industry also includes a number of tiny and medium-sized businesses that serve specialty markets and provide specialised goods. Overall, the apparel and textile industry in Sri Lanka is competitive, with companies continuously innovating and differentiating themselves to remain ahead of the competition, albeit not in price.

Several macroeconomic variables affect the industry's competitiveness and revenue. The exchange rate is one such element that influences the cost of manufacturing and the price competitiveness of Sri Lankan textiles in the worldwide market. A weaker currency makes shipments less expensive, which can help increase demand while on the other hand, can raise the cost of raw materials and equipment imports, reducing the industry's revenue. 

The industry employs over 300,000 people and is a significant employer in the nation. Any changes in work can have serious societal and economic consequences. The profitability and growth of the industry are inextricably linked to employment, with any major changes in the industry possibly affecting the country's total employment rate. 

As a result, the Government and industry stakeholders must collaborate to ensure that the industry stays competitive, creates new job possibilities, and keeps current jobs. This can be accomplished by investing in education and training programs, supporting creativity and business, and advocating for advantageous labour laws that balance the requirements of companies and workers.

To handle these issues, the Sri Lankan textile industry must take a number of steps in order to stay competitive and flourish in the global market. One of the most important steps is to concentrate on product differentiation and invention. The industry must produce new goods and designs to meet shifting customer requirements and carve out a niche for Sri Lankan textiles in the global market. The industry can also concentrate on environmentally friendly and sustainable textiles, which are in high demand among customers and can help Sri Lanka distinguish itself from other textile-producing nations.

To increase productivity and lower labour expenses, the Sri Lankan textile sector must take riskier bets and engage in technology and automation. New technologies such as 3D printing, robotics, and artificial intelligence can help the industry better product creation, reduce waste, and improve quality, as they have done so in developed economies. Automation can also assist the industry in addressing the workforce shortage problem while improving productivity and revenue.