By: Staff Writer
January 27, Colombo (LNW): Sri Lanka’s apparel export earnings reached $4.7 billion in 2024, reflecting a 5% year-on-year (y-o-y) growth, according to the Joint Apparel Association Forum (JAAF).
When combined with the country’s textile exports, the total export value surpassed $5 billion, showcasing the resilience of the industry despite local and global challenges.
Compared to the pre-pandemic benchmark of 2019, when exports were $5.3 billion, 2024 figures reflect a 10.3% shortfall. This underscores the need for focused interventions to reclaim lost ground and exceed pre-pandemic levels.
Performance across key markets revealed mixed outcomes. Exports to the US, Sri Lanka’s largest market, rose by 5.23% to $1.9 billion but remained 19.4% below 2019 levels.
Exports to the UK recorded a strong 7.65% growth, nearing pre-pandemic figures, driven by demand for ethically and sustainably manufactured garments.
Growth in the EU was modest at 0.81%, highlighting challenges in a highly regulated and competitive market.
Meanwhile, exports to other destinations increased by 10.13%, reflecting successful penetration into new markets and the industry’s evolving ability to label, pack, and ship directly to third countries on behalf of customers.
To strengthen the industry’s competitiveness, localised fabric production has emerged as a priority. The Eravur Textile Zone, a 300-acre facility, is designed to house textile-dyeing, washing, knitting, and weaving plants.
This project is expected to significantly reduce production costs, save foreign exchange, and enhance Sri Lankan exports’ appeal to global buyers who demand traceability and sustainability.
JAAF Secretary-General Yohan Lawrence highlighted the significance of the Eravur Textile Zone, calling it a “lifeline” for the industry.
He stressed that localising fabric production is critical to boosting competitiveness and meeting global market demands.
Analysis of the past five years reveals a gradual recovery for the sector. The pandemic caused a significant dip in 2020, with exports dropping to $4.1 billion, a 22% decline from 2019.
Exports briefly peaked in 2022 but saw setbacks in 2023 due to global inflation and reduced consumer spending. The modest growth of 5% in 2024 also reflects pricing pressures faced by the industry.
JAAF emphasizes the importance of continued collaboration between industry stakeholders and the government.
Critical areas include enhanced market access, infrastructure projects like the Eravur Textile Zone, predictable electricity tariffs, and improved operational efficiency at Colombo Port.
Recent electricity tariff adjustments have been welcomed, as Sri Lanka’s energy costs remain high compared to competitors. J
AAF has advocated for energy sector reforms to adopt cost-effective generation and pass savings to consumers.
In a key policy development, Sri Lanka and Indonesia have jointly applied to the UK DCTS authorities for fabric cumulation. If approved, apparel made in Sri Lanka using Indonesian fabric could enter the UK duty-free, boosting competitiveness in that market.
Looking ahead, JAAF is optimistic about surpassing pre-2019 export levels. Strategic investments and reforms could help the industry achieve $6 billion in export earnings, solidifying Sri Lanka’s position as a global leader in quality and ethical manufacturing.
With a focus on sustainability and traceability, the sector remains poised for growth if the right measures are implemented.
