Garments Without Sweatshops

How Sri Lanka's garment industry positioned itself around ethical production and quality for brands like Victoria's Secret and Nike, and firms like MAS Holdings.

Garments are Sri Lanka’s largest export.

Size

Garment exports are around 5 billion dollars a year, employing hundreds of thousands, mostly women.

Ethical positioning

Sri Lanka marketed itself with “Garments Without Guilt” from 2006, emphasising no child labour and good conditions.
Higher wages and standards than some competitors.

Niche products

Lingerie, sportswear and higher-quality items.
MAS Holdings and Brandix became major suppliers for global brands.

Why not compete on price?

With wages higher than in Bangladesh, Sri Lanka competed on quality, speed and ethics.

Challenges

Duty-free access to the EU through GSP+ depends on human rights commitments.
Energy shortages in 2022 hurt factories.
Competition from lower-cost countries.

Lesson

Smaller countries can win in niches rather than mass, low-cost production.

The lingerie factory

A Sri Lankan factory makes high-end lingerie for global brands, with modern facilities and trained workers, earning more per piece than basic T-shirt makers.

Thinking garment exporters must compete only on low wages

Sri Lanka competes on quality and ethics.

Key takeaways

Garments are Sri Lanka's largest export.
"Garments Without Guilt" stressed ethical production.
MAS and Brandix supply global brands.
Sri Lanka competes on quality, not just price.