Sri Lanka’s apparel exports rise in February despite declines in key markets
Daily FT: Sri Lanka’s apparel industry posted a 2.3% export growth in February, reaching $ 407.93 million compared to the same period in 2024.
As per provisional data of the Joint Apparel Association Forum (JAAF), although overall numbers show an upward trend, performance varied across key markets such as the US and UK, which experienced significant declines.
Exports to the US dropped by 7.43%, amounting to $ 153.11 million, while shipments to the UK saw a sharper fall of 14.58%, bringing in $ 54.85 million in February 2025.
In contrast, apparel exports to the European Union (excluding the UK) grew by 7.54%, reaching $ 120.69 million, while exports to other countries surged by 39.85%, totalling $ 79.28 million.
During the first two months of 2025, total apparel exports rose by 12% to $ 845 million, compared to the same period in 2024.
The US market recorded an 8.12% increase in total exports for January and February, amounting to $ 322.86 million, while exports to the EU (excluding the UK) grew by 17% to $ 250.18 million. Meanwhile, the UK market remained sluggish, with a slight decline of 0.21%, bringing total exports to $ 116.42 million for the two-month period.
Exports to other countries recorded the highest growth, rising 23.16% to $ 155.54 million from January to February 2025 compared to the same period in 2024.
Although overall apparel export figures reflect resilience, the decline in the US and UK markets highlights ongoing challenges, prompting industry stakeholders to explore alternative markets and strategies for sustained growth.
Exports to other countries recorded the highest growth, rising 23.16% to $ 155.54 million from January to February 2025 compared to the same period in 2024.
Last year, Sri Lanka’s export earnings from apparel reached $ 4.7 billion, recording a year-on-year growth of nearly 5%.
OSL take:
Sri Lanka’s manufacturing and exports industries have shown a steady growth even during the period the country was facing an economic crisis in 2022. The exports industry, especially the apparel sector, generates a major portion of the country’s revenue. While the strong trade ties and trade concessions enjoyed by Sri Lanka with many foreign countries have helped boost the manufacturing and exports industry, local authorities have also carried out several promotional campaigns in foreign markets to promote local products. Key among the country’s growing exports is the apparel sector. The growth, profits and expansion of local businesses the apparel industry with some businesses even expanding operations overseas, are clear indications of the increasing business potential in Sri Lanka’s apparel industry. Given all these developments and the increasing and evolving global demand in the apparel industry, foreign businesses/investors could confidently explore the growing business/investment opportunities in the local industry. Also, the trade concessions enjoyed by Sri Lanka could further boost businesses in the apparel industry in gaining access to foreign markets.
| Article Code : | VBS/AT/20250326/Z_4 |