Sri Lanka’s apparel sector must focus on differentiation over volume: SLAEA Chief

• Sri Lanka needs to position itself differently from regional competitors like Vietnam
• Focus must shift to skills, high-quality products, and unique ‘design-to-delivery’ solutions
• Sri Lanka very poorly placed in terms of FTA access

By Shannine Daniel

Rajitha Jayasuriya

Sri Lanka needs to be proactive over changing global regulatory environments such as the European Union’s (EU) Directive on Corporate Sustainability Due Diligence (CSDDD) and its Forced Labour Regulation, particularly regarding supply chains, Sri Lanka Apparel Exporters Association (SLAEA) Chairperson Rajitha Jayasuriya said recently.

Jayasuriya called for the country to be “on the front foot” in introducing digital initiatives, not only at industry level but at the national level as well, so that it can position itself as “something unique and different” from its regional competitors.

She added that Sri Lanka cannot compete with regional giants like Vietnam in terms of volume or scale, and should instead focus on differentiation.

“Vietnam today is deeply integrated in its manufacturing strengths and really caters to a high-value segment in synthetic performance wear - a segment that Sri Lanka directly competes with,” Jayasuriya said, adding that apparel exports from Vietnam are eight times greater than Sri Lanka’s.

Moreover, Jayasuriya noted that Vietnam has “strong access to its supply chain verticality.”

“This is not something that we can easily compete with. There have been repeated calls to strengthen the island’s supply chain verticality to compete, not on a lower cost basis, but to increase the speed of access, so that we can get to the customers faster,” she explained.

“In comparison to Vietnam, Sri Lanka is very poorly placed in terms of Free Trade Agreement (FTA) access,” she stressed.

Vietnam currently benefits from a network of over 12 strong FTAs, including the Trans-Pacific Partnership (TPP) - a trade agreement among 12 Pacific Rim economies, the Regional Comprehensive Economic Partnership (RCEP), which is the world’s largest trade bloc, and an FTA with the EU.

Jayasuriya reiterated that Sri Lanka needs to learn to position itself differently, adding that it must focus on its skills in delivering highly technical products in the intimate wear, shapewear, and activewear spaces.

“We are very well known for our ‘design-to-delivery’ solutions, and Sri Lanka also has a reputation of being a truly ethical manufacturing destination. We also have very high compliance rates that our customers depend on and value because they don’t get similar compliance levels from our regional competitors,” she stressed.

“These are our strengths that we can really hone in on and develop, but not by doing exactly what we have been doing so far,” she added.

Jayasuriya made these comments during a panel discussion at the Sri Lanka Economic and Investment Summit 2025.