SLABA says 2026 Budget evens playing field for Sri Lankan fashion brands

Wednesday, 12 November 2025 00:48 - - {{hitsCtrl.values.hits}}

Welcomes Budget; says Govt. responded to key industry appeals on VAT and SME needs

The Sri Lanka Apparel Brands Association (SLABA), representing all leading Sri Lankan apparel and fashion brands, said it enthusiastically welcomes the Budget, which addresses the majority of the industry’s key requests to strengthen the domestic apparel ecosystem, particularly regarding VAT and SMEs.

It commended the Government for responding decisively to industry concerns, particularly the implementation of VAT on imported fabrics, a critical measure advocated by local manufacturers to ensure fair competition and the reduction of the VAT threshold demonstrates a clear commitment to protecting domestic value chains.

SLABA President Fazal M. Fausz said: “We are pleased that the Government has heard us and taken decisive action on VAT for imported fabrics. These measures level the playing field for local manufacturers and SMEs who are vital to Sri Lanka’s economic growth and employment.”

The Budget’s provisions for CESS and duty revisions, coupled with investments in industrial estates, digital tax administration through mandatory e-invoicing, align closely with SLABA’s recommendations for sustainable industry development.

SLABA thanked the Industries Ministry, Finance Ministry, Inland Revenue Department, and Sri Lanka Customs for their meaningful engagement with industry stakeholders. As a collective of Sri Lanka’s leading apparel brands, SLABA remains committed to collaborating with policymakers to advance the sector’s competitiveness and contribution to national development, the association said.