Apparel industry studying India EU FTA By Sunimalee Dias View(s): View(s):Sri Lanka’s apparel industry believes that the newly signed trade agreement between India and the European Union could threaten the local competitiveness globally. Currently Sri Lanka purchases fabrics from China and India with the latter’s fabrics being provided duty free access to the EU since it is a regional state within the SAARC countries. He noted that this trade agreement between India and the EU could have challenges for Sri Lanka but the details of the Free Trade Agreement need to be looked at. With this agreement, India would become a competitive state for Sri Lanka when trading to the EU. If Indian suppliers improve cost competitiveness due to the FTA and also meet compliance requirements, they may take share from Sri Lankan exporters.

Source: Sunday Times January 31, 2026 19:34 UTC