The fashion and apparel sector is a cornerstone of Sri Lanka's economy, serving as a major driver of employment and economic growth. It directly employs over 350,000 individuals, including a significant portion of the country's workforce, particularly women, and indirectly supports the livelihoods of nearly 1 million people across various related industries, such as textiles, logistics, and retail. The sector plays a crucial role in the nation’s economic landscape, contributing approximately 7% to the national GDP. In 2023, export earnings from the sector exceeded USD 5.5 billion, highlighting its importance as one of the largest foreign exchange earners for the country.
As climate change continues to affect production processes, raw material availability, and operational costs, the sector must adapt rapidly to mitigate these risks and maintain its competitive edge in the global market. Moreover, the sector's vulnerability to climate-related risks underscores the need for a comprehensive approach to sustainability, integrating climate resilience into business strategies, enhancing energy efficiency, and investing in sustainable practices.
Multi-stakeholder platforms, like the Multi-Actor Partnership on Climate and Disaster Risk Management and Finance initiated by SLYCAN Trust can play a key role in enhancing coordination and information-sharing to manage climate risks and drive a just transition of the fashion and apparel sector.
In response, SLYCAN Trust has undertaken a comprehensive scoping study to evaluate the sector's vulnerability, explore climate-related risks, and emphasize the need for integrating climate considerations into risk management and adopting sustainable practices.