Improving Transparency for Sustainable Business (ITSB) Initiative launched to Promote Inclusivity and Sustainability across Sri Lanka’s Textile and Apparel Sector

Improving Transparency for Sustainable Business (ITSB)- a transformative initiative for the Textile and Apparel Sector, jointly led by the Global Reporting Initiative (GRI), the Sustainable Development Council (SDC), and the Joint Apparel Association Forum (JAAF) in Sri Lanka with support from the Swedish Government was launched virtually on 29th April 2025.

In 2024, Sri Lanka’s apparel sector generated $5.05 billion in export revenue, reaffirming its position as a key driver of the national economy. The sector is now targeting US$8 billion in export earnings for 2025, a significant increase from the previous year. Contributing 42.01% of the country’s total export revenue, the sector plays a critical role in sustaining foreign exchange earnings The industry also supports around 350,000 direct jobs, making it a vital source of employment, particularly for women in rural areas. Despite the economic impact, the fashion industry is also one of the largest polluters and has come under increasing scrutiny. More than 75% of clothes and other textiles end their life being incinerated or landfilled.

Looking ahead, Sri Lanka has set an ambitious goal of reaching $7 billion in apparel exports by 2030, reflecting its strategic focus on expanding global market share and driving industrial growth. However, the path forward is not without challenges, as the sector must build resilience to face various external as well as internal challenges such as trade barriers and tariffs, compliance with higher social and environmental safeguards, overreliance on a few export markets, currency fluctuations, high production costs, outmigration of labor from the sector etc.

As the apparel and textile sector remains the country's largest contributor to export revenue, the ITSB initiative aims to enhance environmental and social transparency across the industry, ensuring long-term resilience, profitability, and global leadership of the sector.

The launch webinar marked the beginning of a series of capacity-building initiatives aimed at strengthening impact measurement and reporting of industry stakeholders on sector-relevant topics such as climate change, circularity, waste, and biodiversity, while also enhancing transparency on labor, economic, and tax-related impacts to unlock the true potential of ESG data. As part of its rollout, the ITSB initiative will include targeted capacity-building sessions for 100 apparel and textile companies, encompassing both Multinational Enterprises (MNEs) and Small and Medium Enterprises (SMEs).With global markets increasingly demanding traceable, eco-conscious products, Sri Lanka's commitment to sustainability through ITSB is poised to bolster the country's reputation as a responsible apparel manufacturing hub.

The event was attended by more than 100 participants representing MNEs, SMEs, Informal Worker Associations, Industry Associations, Regulators and Policymakers, and International Stakeholders and other Data Users.