Between 2009 and 2014 Sri Lanka’s clothing exports grew by over 51 per cent. And further growth is possible. The industry has built up a reputation for quality and delivery among buyers in the markets of developed countries.

Also, the industry has been a pioneer in adopting environmentally friendly manufacturing and waste management methods, something other countries in the region have yet to make progress on.

The country has created an environment conducive to business and provided tax incentives to encourage foreign direct investment. The clothing industry hopes to secure higher exports to the European Union through the restoration of GSP Plus concessions. Such restoration would provide exports from Sri Lanka with tariff-free access to EU markets and could lead to a sizeable increase in clothing shipments.

However there is a possibility Sri Lanka’s competitive position in the crucial US market will be threatened by the Trans-Pacific Partnership treaty, which is expected to favor Vietnam and Malaysia.

Also if GSP Plus status in the EU market is not restored, Sri Lanka’s clothing producers would remain at a long-term disadvantage in the face of competitors from Pakistan, Bangladesh or Cambodia who do benefit from duty-free access to the EU.