Business · Sri Lanka Bureau
Sri Lanka's apparel industry urges greater domestic fabric production investment
The country's apparel sector is calling for increased investment in fabric manufacturing to strengthen the industry's competitiveness and reduce dependence on imports. Industry stakeholders argue that domestic textile production capacity is critical to sustaining Sri Lanka's position as a major garment exporter.
LSN Sri Lanka ·

Sri Lanka's apparel manufacturers have intensified calls for substantial capital investment in fabric production facilities, citing growing challenges in the supply chain and rising costs associated with importing raw materials.
The industry has identified fabric manufacturing as a strategic gap in the country's textile value chain. With most Sri Lankan apparel exporters currently reliant on imported fabrics, stakeholders argue that developing domestic production capacity would enhance margins, reduce lead times, and provide a competitive advantage in the global market.
Apparel sector representatives have highlighted that investment in fabric mills and textile plants would create upstream employment opportunities while anchoring the broader garment manufacturing ecosystem. The initiative is seen as particularly important given the sector's significance to Sri Lanka's export earnings and employment base.
Industry bodies have urged both government policymakers and private investors to consider fabric production as a high-priority development area. Proponents suggest that targeted incentives for textile manufacturing could attract both domestic and foreign investment, positioning the sector to better compete with regional competitors who maintain integrated textile-to-garment production capabilities.
The push for fabric sector development comes as Sri Lanka's apparel industry seeks to strengthen its market position and build resilience within global supply chains.