Sri Lanka Launches Major ESG Drive To Future-Proof Apparel Sector

A new sustainability initiative aimed at enhancing the global competitiveness and resilience of Sri Lanka’s apparel industry has officially launched with strong backing from both national and international partners.

The Improving Transparency for Sustainable Business (ITSB) program, introduced jointly by the Global Reporting Initiative (GRI) South Asia, Sri Lanka Sustainable Development Council (SDC), Export Development Board (EDB), and the Joint Apparel Association Forum (JAAF), will embed global best practices in ESG (Environmental, Social, and Governance) reporting across Sri Lanka’s largest export industry.

Funded by the Swedish International Development Cooperation Agency (SIDA), the ITSB program aims to equip textile and apparel companies from multinationals to SMEs with the skills to use GRI Standards, the world’s most widely adopted sustainability reporting framework. Key focus areas include labour standards, climate action, energy use, waste, and economic impact. The initiative will also engage regulators, investors, worker groups, media, and academia.

The inaugural capacity-building session, held on July 16 at Courtyard by Marriott Colombo, brought together senior public and private sector leaders, including EDB Chairman Mangala Wijesinghe, JAAF Secretary General Yohan Lawrence, and SDC Director Jeevanthie Senanayake.

Rahul Singh, Senior Manager at GRI South Asia, said the program is designed to raise transparency and sustainability benchmarks across South Asia’s apparel industry. “Using GRI Standards will not only enhance reporting but also boost investor trust, regulatory readiness, and global positioning,” he said.

The initiative supports Sri Lanka’s National Action Plan for Inclusive and Sustainable Business, developed with the UN ESCAP, Ministry of Industries, and SDC. It also responds to global trends, including increasing demand for traceability and the rise of ESG regulations like the EU Corporate Sustainability Due Diligence Directive (CSDDD).

Key session highlights included a preview of the upcoming GRI Textiles and Apparel Sector Standard (2025), workshops on stakeholder engagement and materiality, and a policy roundtable on ESG alignment with business and investment priorities.

With apparel contributing over 40% of Sri Lanka’s total export earnings and employing more than 350,000 people, the ITSB initiative marks a critical step toward building a sustainable, future-ready industry. Sri Lanka is now set to lead the region, with the ITSB expanding to India and Bangladesh later this year.