By: Staff Writer
December 31, Colombo (LNW): Sri Lanka’s apparel sector, a cornerstone of the country’s export economy, has experienced a mix of achievements and challenges in 2024.
Renowned globally for its commitment to ethical production and sustainable practices, the industry has seen fluctuating export revenues, reflecting both global economic uncertainties and shifting market dynamics.
This analysis delves into the year’s key trends, highlighting the sector’s resilience and areas for improvement.
In November 2024, apparel exports grew marginally by 1% year-on-year (YoY) to US $375 million. This marked the lowest monthly export figure since April’s $293 million and was notably below October’s $397 million.
In contrast, August saw exports surge to $511.13 million—the first time in two years that monthly revenues surpassed the $500 million mark. Despite these fluctuations, cumulative apparel exports during the first nine months of 2024 grew by 5.27% to $4.33 billion.
However, the first half of 2024 recorded a 1.4% decline in garment exports, totaling $2.2 billion compared to the same period in 2023.
The industry remains vital to Sri Lanka’s economy, with the domestic apparel market projected to generate $1.7 billion in revenue by the end of 2024.
This market is expected to expand at an annual growth rate of 2.14% from 2024 to 2029. Sri Lanka continues to gain recognition for its sustainable and ethical apparel production practices, home to pioneering initiatives like the world’s first eco-friendly “Green Garment Factory.
Growing global demand for sustainable fashion presents opportunities for the country’s apparel manufacturers to maintain their competitive edge.
Market-specific performance has been mixed. In November, exports to the USA increased by 2.05% to $144 million, while exports to the EU (excluding the UK) fell by 8.6% to $115.7 million.
Exports to the UK, however, rose by 4.74% to $60.6 million, and exports to other markets recorded a significant 17.31% increase to $64.6 million.
Compared to the industry’s benchmark year of 2019, November exports showed declines across most major markets, with drops of 18% overall, including a 31% decrease to the USA and 9.4% to the EU.
However, diversification efforts have borne fruit, as exports to other markets grew by 6%. Year-to-date analysis reveals positive YoY growth across all major markets except the EU.
Exports to the USA rose by 6.25% to $1.73 billion, to the UK by 9.37% to $626 million, and to other countries by 9.4% to $702.5 million.
Despite this, total exports in the first nine months of 2024 remained 10.5% lower than in 2019, emphasizing the need for strategic initiatives to reclaim lost ground.
As Sri Lanka’s apparel sector navigates a challenging global landscape, its strengths in sustainability and market diversification remain crucial for future growth.
