Sri Lanka

<p>The project will en<span lang="EN-GB">hance the knowledge of Sri Lankan exporters on how to supply products to the Japanese market</span><span lang="EN-GB">&nbsp;by developing<span lang="EN-GB">&nbsp;a &apos;Guide to Export to Japan&apos;. This booklet will be&nbsp;</span></span>translated into the two local languages as well, and copies will be shared with all relevant cross-border agencies, trade chambers, and sector associations. A <span lang="EN-GB"><span lang="EN-GB"><span lang="EN-GB">workshop will also be held for a selected group of exporters, potential exporters, and government officials which would cover the key areas of, (a) Addressing the Japanese market requirements for selected products with high demand;(b) Sharing of valuable experiences, success stories, and lessons learned from local companies engaged in exporting to Japan; and (c) Facilitating the participation of representatives from cross-border agencies in Sri Lanka to provide insights into the regulatory requirements for exporting to Japan. &nbsp;<span lang="EN-GB">The key government partner for this project will be the</span> Export Development Board of Sri Lanka. <br></span></span></span></p>

<p>The project, as part of the overall GTEX programme, will help the Sri Lankan textiles and clothing (T&amp;C) sector to stay on top of emerging market requirements for the textiles and clothing (T&amp;C) sector by moving towards greener practices and being able to adhere to strict forthcoming EU regulations for T&amp;C products sold in Europe.&nbsp;</p><p>The project will seek to be transformational, addressing the twin transition of environmental sustainability and digitalization as well as the expected radical shift in demand in Western markets towards &ldquo;green&rdquo; quality products with lower volumes of fast fashion. Without such responsible practices, manufacturers will likely not be able to export anymore to key markets such as the EU, US, or Japan.&nbsp;</p><p>To achieve the said objectives, the prooject will pursue two outcome objectives:</p><ul type="disc"><li>Increased competitiveness of T&amp;C enterprises through sustainable trade</li><li>More effective ecosystem able to direct the T&amp;C sector towards systemic change, addressing sustainability and circularity.</li></ul>

<p><span lang="EN-GB">The surge in demand for sustainable products and the global shift toward sustainable trade and finance have resulted in a proliferation of complex sustainability standards and regulations. These standards, some voluntary and others mandatory, pose challenges for small and medium-sized enterprises (SMEs) in understanding and adhering to them. This difficulty affects SMEs&apos; competitiveness and diminishes their impact on productivity, employment, and growth. Failure to comply with these standards jeopardizes market access for SMEs and their supply chains. To address this, the Asian Development Bank&rsquo;s Trade &amp; Supply Chain Finance Program</span><span lang="EN-US">&nbsp;(TSCFP)</span><span lang="EN-GB">, in collaboration with the International Trade Centre, aims to augment the existing self-assessment module of the ITC Standards Map by leveraging artificial intelligence (AI) to create an SME Standards Navigation Toolkit. This solution supports SMEs by raising awareness of sustainability standards and evaluating their readiness for certification. It offers an online self-assessment to guide them towards certification, providing tailored recommendations for sustainable practices and compliance with relevant standards, ensuring alignment with their business goals. The toolkit will help SMEs&nbsp;</span><span lang="EN-US">in ADB developing member countries (DCMs)&nbsp;</span><span lang="EN-GB">increase their awareness of sustainability and regulatory standards, with an initial focus on social and labour sustainability in the textile and apparel sector. As this initiative progresses from its pilot phase, there is a clear pathway for scaling up. Options for expansion include transitioning from a pilot to a fully funded project by ADB.</span></p>

<p>As a means to tackle the worst economic crisis it has seen since its independence in 1948, Sri Lanka aims to expedite the pace of reforms to support economic recovery and growth through a conducive trade facilitation environment. Thus, the Government of Sri Lanka has recognized the need to reprioritize the implementation of the remaining TFA measures to fulfil its obligations to the WTO, meet agency requirements, and address the needs of the private sector.</p><p>Funded by the Japan International Cooperation Agency (JICA), the project assists the Government of Sri Lanka in reprioritizing, coordinating, and facilitating the implementation of the WTO TFA commitments as well as providing the necessary support to strengthen the NTFC.</p>