Sri Lanka is moving toward exports of value added products. So processes in the industry are becoming more machine-operated and adopting advanced technologies and machineries. Labor will be trimmed down by 20 per cent. Production may be outsourced to countries such as Bangladesh, Vietnam or Ethiopia while value creation and addition will be done domestically.

So the country is moving towards becoming a sourcing hub with regard to the apparel export industry and in the process reducing the export of non-value added or low-value added garment products while introducing increased industrial technological modernization. Sri Lanka is in no position to depend on the apparel exports industry as countries like Bangladesh which have cheaper labor are more competitive in the apparel export sector and market.

But though Sri Lanka is unable to be price-competitive and is also held back by way of the constant and acute shortage of labor, it could on the other hand capitalize on being internationally recognized in terms of quality and delivery. Quality can be developed by way of moving towards more and more value added products while cheap garments can be absorbed into the domestic market. Sri Lanka is the largest source for Victoria’s Secret lingerie and women’s wear.