The Joint Apparel Association Forum (JAAF) stressed the need to exceed the current export quota in the India-Sri Lanka Free Trade Agreement (ISFTA) for apparel to gain significant benefits. Presently, Sri Lanka can export eight million pieces of ready-made apparel to India without duties, but the JAAF desires a wider allowance to tap into extensive trade opportunities for both nations. 

The apparel sector faces challenges with a 20 percent decline in textile and apparel exports, mainly due to reduced demand in primary export markets. JAAF believes that India, as a close trading partner, could offer a lifeline to Sri Lanka while benefiting Indian fabric manufacturers. As Sri Lanka recovers from its worst economic crisis since independence, the role of merchandise exports becomes increasingly crucial. 

Since the ISFTA's implementation, Sri Lanka's export trade surged from US $47 million in 1999 to US $815 million in 2021, facilitating the promotion of a diverse range of products. Despite these successes, the eight million export quota hinders the apparel industry's full potential under the ISFTA. 

Sri Lanka's imports from India also exceed its exports, leading to a trade imbalance. This restricts Sri Lankan exporters from negotiating substantial orders with Indian buyers. JAAF welcomes the ongoing FTA talks between India and Sri Lanka and remains optimistic about the mutual benefits. While awaiting the FTA's finalization, the JAAF urges the removal of the eight million-piece quota to bolster apparel exports to India. 

The association stresses the importance of flexible trade arrangements amid global market conditions, decreased demand, and the prevailing economic crisis in Sri Lanka.