Sri Lanka’s apparel industry – a significant export revenue earner and employer – was substantially hit by the pandemic. Moving from recovery to resilience and a new phase of growth will be shaped by three key trends.

COVID-19 caused severe economic challenges worldwide, including a negative 3.6% growth in Sri Lanka in 2020. A lockdown by the government led to a drop in economic activity and job losses. The government intervened by providing limited stimulus, including cash transfers and low-interest loans, and investing heavily in infrastructure development to help the economy rebound.