Apparel sector must innovate and diversify

THE recent decision by the United States to impose a steep 30% tariff on all imports has once again exposed the vulnerability of the garment industry.

- 

With the US accounting for nearly 40% of Sri Lanka's apparel exports-worth approximately $ 1.9 billion in 2024-this move threatens not only a key source of national income, but also the livelihoods of the 300,000 people, mostly women, employed in the sector.

Sri Lanka's key exports-apparel, rubber products, tea, and IT services-have historically enjoyed relatively low tariff barriers to US markets under schemes like the Generalised System of Preferences. For decades, the apparel industry has flourished under the comfort of preferential trade concessions from both the European Union and the United States. These concessions allowed the industry to remain competitive without needing to substantially innovate or diversify. That era is now rapidly coming to an end. The newly imposed tariffs should be seen not merely as a challenge, but as a much-needed wake-up call.