August 27, Colombo (LNW): Sri Lanka’s apparel sector exhibited positive growth in July compared to the same month last year, reflecting an improvement in order volumes.
According to provisional figures, the sector’s export earnings rose by 3.29 per cent year-on-year (YoY), reaching US $414 million. This marks an increase from US $401.18 million in July 2023.
Exports to major markets showed varying trends. Shipments to the United States increased by 5.47 per cent YoY to US $183.21 million.
The United Kingdom and other regions saw rises of 8.19 per cent YoY and 3.40 per cent YoY, respectively, amounting to US $55.72 million and US $60.82 million.
However, exports to the European Union declined by 2.16 per cent YoY, totalling US $114.63 million.
Despite a month-on-month growth, the apparel sector has faced some challenges this year. It recorded a decline in export earnings in three of the first seven months. Cumulatively, export earnings up to July totalled Rs.2.67 billion, a slight decrease of 0.51 per cent YoY from US $2.68 billion in the January-July 2023 period.
For the year-to-date, exports to the United States and European Union contracted by 1.52 per cent YoY and 4.09 per cent YoY, respectively.
Conversely, exports to the United Kingdom grew by 7.18 per cent YoY, and other markets saw a 2.05 per cent YoY increase.
Yohan Lawrence, Secretary General of the Joint Apparel Association Forum, highlighted the need for consistent government policies to foster stable growth in the sector.
He pointed to the rising interest in sustainable and ethical manufacturing practices as a promising development.
Lawrence emphasised the importance of adapting to market shifts, enhancing value, and utilising trade agreements to boost export performance in the months ahead.
