The Sri Lanka Apparel Brands Association (SLABA), representing the country’s leading apparel and fashion brands, has welcomed the 2026 Budget, commending the government for addressing key concerns raised by the domestic industry.
In a statement, SLABA said the Budget reflects a strong commitment to strengthening the local apparel ecosystem by incorporating several of the association’s recommendations.
“We are pleased that the Government has heard our ask and taken decisive action on VAT for imported fabrics,” said SLABA President Fazal M. Fausz. “These measures level the playing field for local manufacturers and SMEs who are vital to Sri Lanka’s economic growth and employment.”
The association particularly lauded the government’s decision to impose VAT on imported fabrics — a long-standing request from local manufacturers — and to reduce the VAT threshold, describing it as a critical step toward ensuring fair competition and protecting domestic value chains.
SLABA also welcomed provisions for CESS and duty revisions, investments in industrial estates, and the introduction of digital tax administration through mandatory e-invoicing, noting that these initiatives align closely with its vision for sustainable industry growth.
Expressing gratitude to the Ministry of Industries, Ministry of Finance, Inland Revenue Department, and Sri Lanka Customs for their constructive engagement, SLABA reaffirmed its commitment to working with policymakers to enhance the competitiveness and national contribution of Sri Lanka’s apparel sector.
