Sri Lanka has revised its national minimum wage, including wages for its 360,000 apparel workers, in 2024 and 2025 and again in 2026—a period of profound economic change for the country. We provide in this policy brief an analysis of the government’s wage-setting process and changes in the minimum wage’s value and purchasing power over the last 15 years. Our analysis takes account of the impacts of Sri Lanka’s recent economic crisis and compares wage-setting in competing apparel industries, including a close look at wage-setting in one of Sri Lanka’s competitors, Cambodia. We conclude with policy recommendations for government, manufacturers, workers and their organizations and the leading buyers of Sri Lankan apparel.
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