By: Staff Writer
February 02, Colombo (LNW): Sri Lanka’s apparel sector showcased remarkable resilience and adaptability in 2024, with export earnings reaching approximately USD 4.7 billion—reflecting a 5% year-on-year growth. When factoring in direct textile exports, total earnings exceeded USD 5 billion. This steady progress underscores the industry’s potential for sustained expansion, supported by strategic policies and government backing.
The government reaffirmed its commitment to ensuring the apparel industry remains competitive on a global scale. During the 42nd Annual General Meeting (AGM) of the Sri Lanka Apparel Exporters Association (SLAEA), Industry and Entrepreneurship Development Minister Sunil Handunneththi pledged increased support for innovation, technical assistance, and regulatory reforms to help local manufacturers strengthen their market position.
Market Performance and Diversification
United States: Exports rose by 5.23% to USD 1.9 billion, though still 19.4% below 2019 levels, indicating room for further recovery.
United Kingdom: A robust 7.65% growth brought exports close to pre-pandemic figures, fueled by demand for ethically and sustainably produced garments.
European Union: A modest 0.81% increase helped maintain the sector’s market presence.
Emerging Markets: Exports surged by 10.13%, reflecting successful market diversification and direct shipping initiatives.
Key Government Interventions
To enhance global competitiveness, the government has prioritized improvements in supply chain efficiency and policy frameworks. A major development was the reactivation of the Export Development Council (EDCM) after a four-year hiatus. One of its key decisions was the introduction of an automated scanning system at Bandaranaike International Airport (BIA) to replace outdated manual inspections, reducing export delays.
Minister Handunneththi emphasized the need to overcome global supply chain disruptions, particularly in sourcing raw materials. He highlighted the government’s accelerated efforts to develop the Eravur Fabric Park, which aims to strengthen local textile production, reduce dependence on imports, and improve cost efficiency. The Joint Apparel Association Forum (JAAF) has reiterated the importance of localizing fabric manufacturing to boost competitiveness and align with global sustainability and traceability standards.
Challenges and Future Outlook
Despite 2024’s growth, export earnings remain 10.3% below the 2019 peak of USD 5.3 billion, with the industry facing headwinds such as global inflation and reduced consumer spending. The government recognizes that strategic investments and policy reforms will be crucial to regaining lost momentum and achieving future targets, including surpassing USD 6 billion in export revenue.
Handunneththi reaffirmed the apparel industry’s reputation as a global leader in ethical manufacturing, recalling Sri Lanka’s pioneering role in promoting fair labor practices and eco-friendly garment production through the ‘Garments Without Guilt’ initiative. Moving forward, he emphasized the need for continuous innovation, improved production processes, and alignment with international best practices to secure long-term, sustainable growth.
With strategic reforms and strengthened public-private collaboration, Sri Lanka’s apparel sector is well-positioned to navigate global challenges and solidify its standing as a key economic pillar.
