Budget 2026 signals export growth focus; policy clarity key to success: JAAF

Budget 2026 has earned cautious praise from the apparel industry, which sees it as a step in the right direction towards rebuilding the export strength and investor confidence. However, this is provided the government follows through with consistent implementation.

The Joint Apparel Association Forum (JAAF), representing the country’s largest industrial export earner, said the budget’s emphasis on export-led growth, investment facilitation and macroeconomic stability reflects a clear direction towards strengthening Sri Lanka’s external sector. Yet, it stressed that the long-term impact would hinge on how effectively the policies are executed and sustained.

While welcoming the renewed focus on digitalisation, trade facilitation and enhanced capital allowances, the JAAF noted these measures could sharpen competitiveness and attract the much-needed foreign investment at a time when the exporters are grappling with a volatile global environment.

The reforms to the Inland Revenue Department, introduction of RAMIS 3.0 and roll-out of e-invoicing were singled out as particularly important in the post-SVAT era, long-standing asks from the industry to ease compliance and improve efficiency.

JAAF Secretary General Yohan Lawrence said that Budget 2026 “demonstrates encouraging intent to build a stronger export economy but consistency and clarity in policy implementation are what ultimately drive confidence”.

“The apparel sector continues to operate in a highly competitive global environment where even minor disruptions can affect thousands of jobs and livelihoods. We urge the authorities to maintain open dialogue with the private sector to ensure that reforms are implemented with minimal friction,” he added.

The JAAF also stressed the need for greater alignment between policy priorities, sustainability goals and market access requirements under the key preferential trade schemes. The association highlighted stable energy costs, renewable energy facilitation and improved logistics competitiveness as essential to sustaining the export momentum.

Reaffirming its willingness to partner with the government, the JAAF said it stands ready to help advance a unified national export strategy “that supports industries, SMEs and the workforce driving Sri Lanka’s recovery”.