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Sri Lanka’s Apparel Exports in 2024 Reach USD 4.7 Billion with 5% Growth

Sri Lanka’s apparel sector recorded export earnings of USD 4.7 billion in 2024, marking a year-on-year growth of nearly 5%, according to the Joint Apparel Association Forum (JAAF). The overall export value exceeded USD 5 billion, reflecting gradual recovery and resilience amid global and domestic challenges.

Performance Compared to Pre-Pandemic Levels
While 2024’s performance represents growth, it remains 10.3% below the USD 5.3 billion achieved in 2019, the last “normal” pre-pandemic year.

Export Highlights by Market:

  • United States: Exports grew by 5.23% to USD 1.9 billion, though the figure remains 19.4% below 2019 levels, showcasing the potential for further recovery.
  • United Kingdom: A robust growth of 7.65%, nearing parity with 2019 levels, driven by sustained demand for ethical and sustainable garments.
  • European Union: Modest growth of 0.81%, with the sector maintaining a foothold in a competitive and regulated market.
  • New Markets: Exports to new destinations grew by 10.13%, reflecting successful market diversification and direct-to-third-country shipping trends.

Strategic Developments: Eravur Textile Zone
The Eravur Textile Zone is a pivotal initiative aimed at localizing fabric production. Spanning 300 acres, the zone is designed to accommodate facilities for textile dyeing, washing, knitting, weaving, and related processes. It is expected to significantly reduce foreign exchange outflows, cut production lead times, and enhance competitiveness.

“Localizing fabric production is essential for increasing competitiveness and meeting global market demands. The Eravur Textile Zone is a lifeline for the industry,” said Yohan Lawrence, Secretary-General of JAAF.

Challenges and Future Actions
Despite growth, the sector continues to face challenges, including:

  • Downward pricing pressure.
  • High energy costs: Recent electricity tariff adjustments are a positive step but further energy cost reductions are needed.
  • Operational inefficiencies: Bottlenecks at the Colombo Port hinder smooth export processes.

Policy Recommendations:

  • Enhanced market access.
  • Enabling infrastructure projects like the Eravur Textile Zone.
  • Transparent and predictable electricity pricing.
  • Resolving operational challenges in logistics and ports.

Sector Outlook
JAAF’s analysis over the past five years shows a gradual recovery from the pandemic-induced dip in 2020, when exports fell to USD 4.1 billion, a 22% drop from 2019. The 5% growth in 2024 highlights resilience but underscores the need for strategic measures to strengthen long-term growth and competitiveness.

Sri Lanka’s apparel sector remains a vital contributor to the economy, with its focus on ethical manufacturing and sustainability driving demand in key markets.

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