Driving transparency and sustainability in Sri Lanka’s textile sector: a new chapter for ethical business
Sri Lanka’s apparel and textile industry—long celebrated for its ethical manufacturing practices—is once again stepping into the spotlight, this time with a transformative push toward greater transparency, inclusivity, and sustainability. At the heart of this initiative is a collaborative effort involving the Global Reporting Initiative (GRI), the Sri Lanka Sustainable Development Council (SDC), Sida (the Swedish International Development Cooperation Agency), and a range of private and public stakeholders.
Laying the groundwork: why transparency matters
The textile industry remains one of Sri Lanka’s most significant economic pillars, accounting for over 40% of the country’s total exports and employing hundreds of thousands of workers, a large portion of whom are women. Yet like many other global manufacturing hubs, it faces increasing scrutiny around environmental impact, labor rights, and governance practices.
The GRI, known for its globally recognized sustainability reporting standards, has recently partnered with Sri Lanka to enhance corporate disclosure practices. Through targeted training, stakeholder engagement, and capacity building, the initiative seeks to empower textile companies to report transparently on their environmental, social, and governance (ESG) performance.
Action Plan for Inclusive and Sustainable Business
In August 2024, the SDC released a strategic “Action Plan to Develop Inclusive and Sustainable Business Capacities in Sri Lanka”, highlighting key challenges and proposing actionable solutions. The plan outlines several goals:
- Enhancing ESG reporting in alignment with global standards.
- Strengthening institutional frameworks and public-private collaboration.
- Promoting gender equity and decent work practices.
- Supporting SMEs and rural enterprises to adopt sustainable practices.
This roadmap is not just a vision—it’s a call to action supported by local and international development agencies, including Sida, which has a long-standing history of supporting inclusive economic development and climate resilience across Asia.
Sweden’s role in fostering responsible trade
Sida’s involvement has brought a strong development lens to the initiative, focusing on equitable growth, climate adaptation, and human rights. Its collaboration with GRI and Sri Lankan agencies reinforces a commitment to building resilient economies that leave no one behind.
Through grants, knowledge transfer, and policy support, Sida is helping to institutionalize transparency as a standard—not an exception—in Sri Lanka’s business landscape.
Apparel industry response: leadership and opportunity
Sri Lanka’s apparel sector, represented by organizations such as Sri Lanka Apparel (SLA), has shown remarkable leadership in embracing the shift. Known for initiatives like “Garments Without Guilt,” the sector is no stranger to the ethics conversation. The latest push toward GRI-based reporting is seen not just as compliance, but as a strategic move to remain competitive in a global market that increasingly demands responsible sourcing.
SLA has emphasized the importance of embedding sustainability at every level—from supply chain traceability and carbon neutrality goals to gender empowerment and community development.
Looking ahead: challenges and momentum
While the momentum is promising, challenges remain. Many small and medium enterprises (SMEs) lack the technical and financial resources to implement full-scale ESG reporting. Bridging these gaps will require continued support, smart partnerships, and scalable tools.
However, with clear policy direction, international cooperation, and a proactive private sector, Sri Lanka is well-positioned to become a regional model for sustainable textiles.
Final Thoughts
Watching the evolution of ethical manufacturing, Sri Lanka presents a compelling case study. It showcases how emerging markets can lead with values, partner with global institutions, and shape an industry where transparency is not only celebrated but expected.
As this initiative unfolds, it’s not just about ticking ESG boxes—it’s about reimagining how a country’s flagship industry can align profit with purpose
