Future of Sri Lanka's garment industry

NARENDRA MODI'S VISIT AND WHAT IT MEANS FOR SRI LANKAN GARMENT SECTOR

- By SANTOSH MENON

A 44 percent Trump tariff could seriously impact Sri Lankan business and thereby foreign direct investment (FDI) jobs, says Sri Lanka's garment industry.

Sri Lanka is just stabilising after the economic crisis. Stringently following the International Monetary Fund norms and increasing the tax base, etc. have yielded results and the country is moving towards recovery. Debts have been deferred to 2028, when it needs to be repaid.

And there are two wings to ensure that happens - opening the economy, get valuable FDI and increase the tax base, so more revenue is collected from the people's earnings.

The garment industry in Sri Lanka has been a key earner of foreign exchange - over 15% years the garment industry has earned a high of U S $ 5.95 billion in 2022 to U S $ 5 billion in 2024.