In 2018, Sri Lanka’s earnings from apparel exports grew 3.6 per cent from the year before. About 80 per cent of its production is shipped to Europe, and the remainder to the United States. Garments are currently Sri Lanka’s leading exports.

HSBC, Sri Lanka’s largest bank, and the environmental group International Union for Conservation of Nature (IUCN) are working together to create a cohesive low-carbon development transition strategy for the country’s garment industry. With this project, HSBC is moving beyond transactional corporate social responsibility to more of a knowledge-based contribution that benefits the communities, the environment and the country at large.

The apparel industry is a critical income earner for Sri Lanka, and supporting its transition into greener development is imperative for the growth and long-term stability of the industry. Sri Lanka’s apparel exports have made a significant impact on American, European and other major export markets around the globe. The country’s target is to reach $ 8 billion in exports by 2025. Apparels are Sri Lanka’s biggest exports to the EU. Almost 90 per cent of Sri Lankan exports to the EU are exported under GSP Plus or with zero duty. The GSP Plus scheme encourages increased value addition within Sri Lanka and thereby promotes backward integration, resulting in the setting up of new industries, and creating new employment opportunities in the country.