Sri Lanka’s Apparel Industry Demonstrates Resilience Amid Market Shifts

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Sri Lanka’s apparel industry exhibited resilience and adaptability in February 2025, recording a 2.3% export growth generating $407.93 million compared to the same period in 2024. According to provisional data from the Joint Apparel Association Forum (JAAF), the industry experienced mixed performance across key markets, with declines in traditional regions but notable gains in emerging destinations.

Exports to the United States, a primary market for Sri Lankan apparel, saw a 7.43% drop, amounting to $153.11 million, while the UK market recorded a 14.58% decline, with total exports at $54.85 million. These downturns reflect economic uncertainties and changing consumer demand in Western markets.

However, the industry saw strong growth in other regions. Apparel exports to the European Union (excluding the UK)rose by 7.54% to $120.69 million, while shipments to other international markets surged by 39.85%, reaching $79.28 million. This diversification highlights Sri Lanka’s strategic expansion into emerging markets to mitigate losses in traditional strongholds.

For the first two months of 2025, total apparel exports increased by 12%, reaching $845 million compared to the same period in 2024. Despite a February decline, exports to the US market grew by 8.12% in January and February, totaling $322.86 million. The EU (excluding the UK) also showed a 17% increase, reaching $250.18 million. Meanwhile, the UK market remained weak, recording a 0.21% decline, with exports totaling $116.42 million.

The most significant growth was seen in non-traditional markets, with exports rising 23.16% to $155.54 million in the first two months of 2025. This shift underscores the industry’s focus on diversification and expansion beyond Western markets.

Despite challenges in key regions, Sri Lanka’s apparel industry remains robust, with total export earnings reaching $4.7 billion in 2024, marking a 5% year-on-year growth. Industry leaders are increasingly exploring alternative markets and adopting innovative strategies to ensure sustained expansion and competitiveness in an evolving global landscape.

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