Sri Lanka’s apparel exports hit all-time high in June with $ 537 million.
Daily FT: Apparel exports in June had reached an all-time high figure for a month of $ 537 million as well as in the first half with $ 2.8 billion, reaffirming the sheer resilience of the private sector driven industry. According to the Joint Apparel Association Forum (JAAF), June 2022 performance had beaten the previous highest for a month of $ 504 million achieved in March 2019. From a year ago, June 2022 achievement reflects a strong 39.45% growth. In May, YoY growth was 30%. Confirming the apparel industry has not only reverted to pre-COVID resilience but bettered it, the first half figure of $ 2.8 billion is above the $ 2.62 billion achieved in the first of half of 2019, the industry’s best year so far with $ 5.6 billion in exports for the full year. In comparison to the first half of 2021, the latest performance reflects a 20% growth. In 2021 apparel exports rose by 23% to $ 5.43 billion. JAAF sources said that in June exports to the USA were up by a significant 67.6% to $ 231.38 million while shipments to the EU (excluding exports to UK) saw a 24% increase to $ 158.48 million. Exports to the UK were up 16% to $ 69.52 million. JAAF also said exports to other countries too have recorded an increase of 31.52% to $ 77.27 million in June 2022 compared to a year ago. Recently the Board of Investment (BOI) said investors continue to show interest in Sri Lanka’s apparel and textile industry despite political turbulence in the market. BOI had signed agreements worth $76 million for new investments and expansions in the sector for 2022 so far.
Sri Lanka’s manufacturing and export sectors have posted an overall growth momentum in the past few months that has continued in the month of June as well. The country’s apparel industry is one of the main foreign exchange earners to the country and the all time high revenue recorded by the industry this June, is indicative of the strength and growth of the sector as well as its growing business potential. The many trade agreements as well as the trade concessions enjoyed by the country have also helped boost Sri Lanka’s apparel industry. With the local authorities offering many incentive schemes for investors and moves to set up a dedicated fabric park in the country to further support the apparel industry, there’s an overall expansion in business/investment opportunities in Sri Lanka’s apparel industry. Given the growth potential in Sri Lanka’s apparel industry, foreign businesses/investors could confidently explore opportunities in the industry. Foreign businesses could also look at forming partnerships or joint ventures with local businesses to expand operations. Many local apparel sector businesses have also expanded to foreign markets while all businesses engaged in the industry have recorded profits.
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