Sri Lanka’s apparel sector takes a step toward transparency with new ESG initiative
A new initiative, Improving Transparency for Sustainable Business (ITSB), has been launched to enhance environmental, social, and governance (ESG) reporting standards in Sri Lanka’s textile and apparel sector. This initiative is a collaboration between GRI South Asia, the Sustainable Development Council (SDC) of Sri Lanka, the Sri Lanka Export Development Board (EDB), and the Joint Apparel Association Forum (JAAF).
The primary goal of ITSB is to help both large multinational companies and small to medium-sized enterprises in the South Asian textile and apparel industry adopt and implement ESG practices. With support from the Swedish International Development Cooperation Agency (SIDA), the program will provide essential training on the GRI Standards, helping companies address critical sustainability issues like labor practices, climate impact, energy use, economic contributions, and waste management.
ITSB also aims to engage a wide range of stakeholders, including regulators, investors, industry associations, worker groups, media, and academic institutions. By doing so, the initiative seeks to encourage greater collaboration and dialogue within the sector, ultimately driving better ESG practices.
Rahul Singh, Senior Manager at GRI South Asia, explained, “ITSB is designed to elevate sustainability practices and transparency across South Asia’s textile and apparel sector. This program will help position the industry for long-term resilience, profitability, and global leadership.”
The initiative is aligned with Sri Lanka’s national strategy to promote inclusive and sustainable business practices. It comes at a time when international buyers are increasingly focused on traceability and ethical sourcing, driven by new regulations such as the EU’s Corporate Sustainability Due Diligence Directive.
The inaugural session of the ITSB program was held on July 16, 2025, at the Courtyard by Marriott in Colombo. The event featured a preview of the draft GRI Textiles and Apparel Sector Standard (2025), workshops on materiality assessments, stakeholder engagement, and discussions on integrating ESG considerations into business strategies.
The ITSB program plans to expand into India and Bangladesh later this year. Given that apparel accounts for more than 40% of Sri Lanka’s total exports and employs over 350,000 individuals, this initiative plays a vital role in promoting sustainability and transparency in the industry.
