President pledges support for apparel sector

• Pushes export-led growth and rural industrialisation

President Anura Kumara Dissanayake yesterday assured the apparel industry of the Government’s full support to overcome sectoral challenges and drive an export-led growth strategy, while inviting investors to expand manufacturing operations into rural areas to boost dollar earnings and economic activity.

The commitment was made during a high-level discussion at the Presidential Secretariat attended by leading apparel industry executives and investors, where participants reviewed key obstacles facing the sector and the support required to successfully implement the Export Development Board’s (EDB) new export strategy.

The meeting comes as Sri Lanka seeks to strengthen foreign exchange inflows and accelerate economic recovery through export growth, with the apparel industry remaining the country’s largest merchandise export sector.

During the discussions, the President stressed that strengthening dollar-generating industries was essential to maintaining macroeconomic stability, noting that while investments denominated in Sri Lankan rupees had increased, the country needed to expand foreign currency earnings to ease pressure on the external sector.

He said economic recovery could be sustained by increasing export revenues and other dollar inflows while keeping rupee-denominated expenditure under control.

A key focus of the discussions was the Government’s proposal to encourage industrial expansion into rural regions. The President said decentralising industrial activity could significantly strengthen the export economy while creating employment opportunities outside major urban centres.

As part of this effort, the Government is considering a “Plug and Play” investment model under which investors would be provided with ready-built factory premises and supporting infrastructure, reducing start-up costs and speeding up project implementation.

Land-related issues affecting investors also featured prominently during the meeting. The President assured business leaders that the Government would take steps to safeguard the value of land assets and ensure policy consistency, adding that legal reforms aimed at addressing longstanding concerns were already being prepared.

The President also acknowledged difficulties faced by local raw material suppliers arising from the current Value Added Tax (VAT) framework and requested industry representatives to submit proposals on alternative relief measures that could support domestic suppliers without undermining fiscal objectives.

Participants further discussed strategies to expand market access through new and enhanced free trade agreements, as well as measures to secure larger export quotas in key international markets.

In a move aimed at improving Sri Lanka’s trade facilitation framework, officials informed the meeting that the National Single Window for Trade is expected to become operational by the end of July, streamlining trade-related procedures and reducing administrative bottlenecks. The National Single Window for Investment is meanwhile scheduled for completion before the end of the year.

The President also outlined broader governance reforms aimed at improving the business environment, including measures to strengthen legal and technological mechanisms to prevent illicitly acquired wealth from being transferred overseas.

He further disclosed that the Government plans to introduce new legislation to combat organised crime while safeguarding civil liberties, replacing the existing Prevention of Terrorism Act framework.

Industry representatives welcomed the opportunity to engage directly with the President and called for the establishment of a monthly forum to discuss operational issues and policy concerns with relevant Government agencies.

Responding positively to the proposal, the President instructed officials to make arrangements for regular engagements. 

Labour Minister and Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando, Treasury Secretary Dr. Harshana Suriyapperuma, Imports and Exports Controller General Upulmalee Premathilaka, EDB Chairman Mangala Wijesinghe, officials representing the Inland Revenue Department, Sri Lanka Customs, and other relevant institutions, as well as a number of leading business leaders and investors from Sri Lanka’s apparel sector, were present at the discussion.