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Sri Lankan Brands Call for Dramatic CESS Hike to Protect Domestic Apparel Sector

• By  Textile Excellence
• July 12, 2025

Sri Lankan apparel brands are urging the government to impose a steep increase in the CESS levy on imported garments. Proposal suggests raising the duty 300 to 400% to shield local manufacturers from a flood of low-cost, often substandard imports. Former Sri Lanka Brands Association President P. Yasotharan highlighted that imported apparel holds 65% of the market, crowding out domestic production in a local garment market valued at Rs 700 billion.

Level Playing Field Demand

Current CESS adds just Rs 50 to Rs 100 per garment. Industry leaders argue that this small levy offers minimal protection. Increasing the rate to three or four times the current amount could normalize import prices to local production levels. Yasotharan emphasized that Sri Lankan brands deliver quality on par with imported goods and can compete if the market is fair.

Impact On Consumers and Industry

Industry fears that unchecked cheap imports threaten both jobs and economic growth. An increase in cess would benefit manufacturers adhering to national tax and quality norms but may raise retail prices for consumers in the short term. Observers stress the need for balance: higher duties must be coupled with support for local firms to improve productivity and quality.

Next Steps and Policy Challenges

Sri Lankan government is yet to respond. This proposal comes amid wider economic challenges, including recent US tariff hikes on exports. Domestic solution like CESS adjustment is seen as a necessary step to reinforce Sri Lanka’s apparel ecosystem. Strong policy measures and industry-government collaboration will determine whether Sri Lanka can preserve its garment manufacturing legacy.

Former Sri Lanka Brands Association President P. Yasotharan highlighted that imported apparel holds 65% of the market, crowding out domestic production in a local garment market valued at Rs 700 billion.