Sri Lanka's apparel sector is heading for a major crisis due to an acute labor shortage. This needs to be addressed by using latest technology. Apparel is a labor intensive sector and the current labor shortage will be a challenge for the sector.

In 2016, half of Sri Lanka’s total revenues were from the textile and garment sector and this ratio has remained the same for several years. Sri Lanka's export basket has not changed much since the 1990s. If the country is to substantially increase export revenues, diversifying to new sectors is key. Similarly diversification of markets is also a priority for Sri Lanka.

With GSP Plus trade arrangement Sri Lanka has a great potential to export apparel to EU countries duty free but the skill labor shortage would hamper the opportunity to tap that lucrative market. The EU aims to support Sri Lanka’s economic growth by launching a series of initiatives which includes support to design and implement a coherent trade strategy for export competitiveness, support for trade policy development and regulatory reforms, enhancement of Sri Lanka's WTO trade negotiations capacity, support Sri Lanka's regional integration process and help Sri Lanka maximize the use of the EU GSP Plus scheme when it is granted.