EDB partners with Swiss SECO to launch GTEX2 to boost apparel industry
Daily FT: The Export Development Board (EDB) has entered into a strategic agreement with the State Secretariat for Economic Affairs of Switzerland (SECO) to implement the second phase of the Global Program on Textile and Clothing (GTEX2), aimed at enhancing the apparel sector.
The five-year program, running from 2024 to 2027, is funded by the Swiss Government and organised in collaboration with the Swedish International Development Cooperation Agency (SIDCA) and the International Trade Centre (ITC), which provides technical assistance. A National Project Coordinator (NPC) has been appointed in Sri Lanka to oversee the project’s implementation.
The EDB, in conjunction with the Joint Apparel Association Forum Sri Lanka (JAAF), will work with the Swiss Confederation on GTEX2, which includes other participating countries such as Egypt, Jordan, Morocco, and Tunisia. The programme seeks to support small and medium-sized enterprises (SMEs) in the textile and clothing industry to enhance their operational capacities, adhere to social norms and environmental sustainability, add value to products and services, and expand exports to both traditional and new markets.
At the launch, Investment Promotion State Minister Dilum Amunugama stated that the programme will drive the industry towards sustainable practices and bolster its global competitiveness by integrating advanced digital technologies.
“This partnership is expected to significantly boost Sri Lanka’s efforts to transform the textile and apparel industry, making it more competitive and sustainable on the global stage,” he added.
He highlighted that the textile and clothing industry in Sri Lanka is robust, ethical and sustainable, meeting global demands for high-quality fashion products.
In 2023, the sector generated over $ 4.8 billion, accounting for 42% of total merchandise exports, with key markets including the US, UK and EU. Contributing 7% to the Gross Domestic Product (GDP), it is the largest single sector contributor.
The country aims to achieve an export revenue target of $ 8 billion by 2025.
He outlined that Sri Lanka has pioneered sustainable manufacturing with significant changes in processes, sourcing strategies and product innovation.
“Ethical manufacturing practices include the absence of child labour, forced labour, discrimination, and sweatshop practices, earning the industry the slogan “Garments without guilt.” The industry remains competitive with companies investing in sustainability strategies,” he added.
Amunugama highlighted that Sri Lanka hosts the world’s first custom-built green apparel factory and Asia’s first Carbon Neutral Certified factory, along with numerous LEED Platinum and Gold Certified manufacturing plants. Many factories are dedicated to zero-carbon operations, implementing zero-waste policies, strategic waste management systems and investing in renewable energy sources like solar, wind and hydropower.
He said with around 350 garment factories and 16 textile and fabric manufacturing units, the industry is crucial for advancement.
OSL take:
Sri Lanka is focused on transforming the country into a blue and green economy. The government of Sri Lanka as well as the local industries are working to achieve sustainable development goals (SDGs). All these have resulted in Sri Lanka’s manufacturing and export sectors being focused on giving prominence to green solutions. It is in such a backdrop that Sri Lanka is looking at further developing the manufacturing and export sectors, especially the apparel industry to adopt green solutions through foreign collaborations. This move has now opened up new business/investment opportunities for foreign businesses/investors in relation to Sri Lanka’s apparel industry. Given the steady growth recorded by Sri Lanka’s manufacturing and export sectors, especially the apparel industry, foreign businesses/investors could explore the expanding opportunities while looking at expanding existing operations through collaborations with local businesses. With Sri Lanka’s overall economic expansion, foreign businesses/investors could be assured of further growth in the business potential of the country’s manufacturing and export sectors, especially the apparel industry.