Enhancing Investor Attractiveness in Sri Lanka's Apparel Sector Through Environmental and Social Sustainability Goals: A Gap Analysis

This study aims to explore how incorporating environmental and social sustainability goals can enhance investor attractiveness in Sri Lanka's apparel sector by identifying gaps between current practices and customer auditing expectations. The research employs a mixed-method approach, combining quantitative analysis of sustainability performance data from selected export-oriented apparel firms with qualitative insights from interviews with key stakeholders. The study focuses on leading companies, referred to as F1, F2, F3, F4, and F5, to maintain anonymity. The study reveals significant gaps between prevailing sustainability practices and customer auditing expectations, particularly in areas of energy efficiency, greenhouse gas emissions, and water management. Political instability and inconsistent policies were identified as significant barriers to long-term sustainability initiatives. The research also highlights the lack of standardized baseline data and technical expertise as key challenges. This study contributes to the literature on sustainable supply chain management in developing countries by providing a comprehensive analysis of the challenges and opportunities in aligning sustainability practices with investor expectations in the apparel sector. The findings offer strategic recommendations for apparel manufacturers, policymakers, and industry associations to bridge identified gaps, including developing industry-wide sustainability standards, enhancing technical capacity, and advocating for supportive regulatory frameworks. These strategies aim to improve the sector's attractiveness to foreign investors while promoting sustainable development.