Sri Lanka’s domestic apparel brands are urging the government to hike the CESS (Commodity Export Subsidy Scheme) tax on imported clothing by 300–400%, citing it as a vital move to protect local manufacturers from being overwhelmed by a surge of cheap imports.

At a press conference held this week at the Ceylon Chamber of Commerce, former Sri Lanka Brands Association President P. Yasotharan said the local industry is at risk, as imported garments—often of substandard quality—are flooding the market at prices Sri Lankan producers cannot compete with.

Yasotharan pointed out that while the local apparel market is worth around Rs. 700 billion, domestic manufacturers contribute less than 35%. He blamed this disparity on tax loopholes and unfair competition created by low-cost foreign imports.

He proposed that by tripling or quadrupling the CESS tax on such imports, a more level playing field could be established. “If these importers can still compete with us at that price while maintaining standards, then it’s a fair market,” he said. “Our tailors and workers produce high-quality garments—they deserve a chance to thrive.”

Currently, CESS adds only about Rs. 50–100 per imported shirt. Though the previous government had plans to phase out para-tariffs like CESS under IMF-backed reforms, those changes haven’t been fully enacted. The 2025 National Imports Tariff Guide still includes clothing-specific CESS levies.

While the local apparel industry supports the proposal, concerns have been raised about affordability for consumers, especially during an economic downturn. Foreign e-commerce platforms and discount retailers have given consumers access to cheaper fashion options—choices that may become limited if steep tax increases are implemented.