New ESG Initiative Launches in Sri Lanka’s Apparel Sector

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AI Summary

A groundbreaking initiative, known as Improving Transparency for Sustainable Business (ITSB), is poised to strengthen environmental, social, and governance (ESG) reporting standards within Sri Lanka’s textile and apparel industry. This collaborative effort involves key organizations, including 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 ITSB program is focused on building capacity among textile and apparel companies across South Asia, encompassing both large multinational corporations and small to medium-sized enterprises. Supported by the Swedish International Development Cooperation Agency (SIDA), the initiative will provide training on the GRI Standards, enabling firms to effectively report on critical sustainability issues such as labor practices, climate impact, energy use, economic contributions, and waste management.

Engaging a diverse array of stakeholdersโ€”including regulators, investors, industry associations, worker groups, media representatives, and academic institutionsโ€”ITSB aims to foster collaboration and dialogue within the sector.

Rahul Singh, senior manager at GRI South Asia, commented, โ€œITSB is designed to elevate sustainability practices and transparency across South Asiaโ€™s textile and apparel sector, positioning it for long-term resilience, profitability, and global leadership. Through this multi-year initiative, we aim to create a dynamic and inclusive platform that brings together key stakeholders across Sri Lankaโ€™s textile and apparel sector.โ€

The initiative aligns with Sri Lankaโ€™s national strategy to promote inclusive and sustainable business practices. It is particularly relevant as international buyers increasingly prioritize traceability and ethical sourcing, necessitated by new regulations such as the EUโ€™s Corporate Sustainability Due Diligence Directive.

The inaugural session of the ITSB program took place on July 16, 2025, at the Courtyard by Marriott Colombo. The event featured a preview of the draft GRI Textiles and Apparel Sector Standard (2025), workshops focused on materiality assessment and stakeholder engagement, and discussions on integrating ESG considerations into broader business strategies.

Looking ahead, the ITSB program is expected to expand its reach to India and Bangladesh later this year. With apparel accounting for over 40% of Sri Lankaโ€™s total exports and providing employment for more than 350,000 individuals, this initiative is set to play a crucial role in enhancing sustainability and transparency within the industry.

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