
Sri Lankan apparel faces US tariffs
New initiative strengthens apparel sector sustainability reporting.
28th July 2025
Knitting Industry
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Colombo, Sri Lanka
A new sustainability programme is helping position Sri Lanka’s textile and apparel sector as a global leader in environmental, social and governance (ESG) transparency.
The Improving Transparency for Sustainable Business (ITSB) initiative, launched by the Global Reporting Initiative (GRI) South Asia in collaboration with the Sustainable Development Council (SDC), the Sri Lanka Export Development Board (EDB), and the Joint Apparel Association Forum (JAAF), aims to embed world-class ESG reporting practices across the country’s leading export industry.
The initiative is supported by the Swedish International Development Cooperation Agency (SIDA) and targets a wide spectrum of industry players - from large multinational companies to small and medium-sized enterprises. Participating organisations will receive tailored training on applying the globally recognised GRI Standards to improve transparency on issues such as labour practices, climate impact, energy use, economic contribution and waste management.
ITSB is not limited to business engagement. It also brings together regulators, investors, industry bodies, worker groups, media and academia to build a holistic platform for responsible business conduct in the country’s textile and apparel sector.
The first capacity-building session was held on 16 July 2025 at Courtyard by Marriott Colombo. Attendees included senior public and private sector representatives such as EDB Chairman Mangala Wijesinghe, JAAF Secretary General Yohan Lawrence, and SDC Director Jeevanthie Senanayake.
Rahul Singh, Senior Manager, South Asia, GRI, highlighted the broader vision of the programme: “ITSB is designed to elevate sustainability practices and transparency across South Asia’s textile and apparel sector, positioning it for long-term resilience, profitability and global leadership. By adopting the GRI Standards, companies not only boost corporate transparency but also reinforce investor confidence and regulatory preparedness.”
The initiative aligns with Sri Lanka’s Action Plan to Develop Inclusive and Sustainable Business Capacities, created in partnership with the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP), the Ministry of Industries, and the SDC. Its timing is critical as global buyers increasingly demand traceability and ethical sourcing in response to new regulations such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD).
Key moments from the Colombo event included an exclusive preview of the draft 2025 GRI Textiles and Apparel Sector Standard, workshops on materiality and stakeholder mapping, and a high-level roundtable focused on aligning ESG with business strategy, policy and investment frameworks.
The ITSB initiative is also set to expand to India and Bangladesh later this year, with Sri Lanka establishing itself as an early regional mover. With apparel representing more than 40 percent of the country’s export revenue and employing over 350,000 people, the programme marks a strategic step toward creating a sustainable and resilient industry.
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