Apparel Brands Association welcomes Budget 2026

• Says govt. responds 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, enthusiastically welcomed the budget, which addresses the majority of the industry’s key requests to strengthen the domestic apparel ecosystem.

Government hears industry voice

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

“We are pleased that the government has heard our ask and taken decisive action on VAT for imported fabrics,” said SLABA President Fazal M. Fausz. 

“These measures level the playing field for the local manufacturers and SMEs who are vital to Sri Lanka’s economic growth and employment.”

Supporting local manufacturing and SMEs

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 the SLABA’s recommendations for sustainable industry development.

The SLABA thanks the Industries Ministry, Finance Ministry, Inland Revenue Department and Sri Lanka Customs for their meaningful engagement with the industry stakeholders.

As a collective of Sri Lanka’s leading apparel brands, the SLABA remains committed to collaborating with the policymakers to advance the sector’s competitiveness and contribution to national development.