From catwalk to crossroads: Apparel industry's new challenge

THE recent tariff revisions under the Trump administration have overshadowed Sri Lanka's well-established apparel sector, a key pillar of the country's export economy. As a recognised exporter of high-end, ethically produced garments, Sri Lanka has built a reputation in the US niche market for quality and reliability. However, the new tariff bands threaten to undermine this progress, risking foreign earnings and thousands of direct and indirect job opportunities.

- By Jagath De Silva

The removal of the US garment quota system years ago led to the downfall of many small and medium-scale manufacturers, leaving only a few large players in the market. Despite this, Sri Lankan exporters persevered, carving out a strong international brand image for "Sri Lanka" through quality, compliance, and innovation. Now, with the new tariff structure in place, the future of this sector hangs in the balance.

To weather these headwinds, Sri Lanka must adopt a comprehensive strategy focused on diplomacy, diversification, domestic reform, and collaboration. The following key measures are vital:

Diplomatic engagement

Bilateral negotiations: Engage directly with US trade officials to explore the possibility of exemptions, tariff relief, or preferential trade agreements.

Leveraging diaspora networks: Mobilise Sri Lankan-American business groups and lobby allies within the US to advocate for equitable trade treatment.

Global platforms: Raise concerns at the WTO and other forums, highlighting the disproportionate impact on developing nations.

Export diversification