Sri Lanka’s apparel industry sets target of US$ 8 billion in export earnings by 2025
Joint Apparel Association Forum (JAAF) of Sri Lanka has reportedly stated that the country’s apparel industry has surpassed US$ 5 billion in export earnings in 2018 and has now set a target of US$ 8 billion by 2025.
Issuing a statement, JAAF has noted that total earnings from export of apparel products falling under HS chapters 61, 62 and 63 amounted to US$ 5050 million in 2018, registering an increase of 4.79% compared to the export turnover of US$ 4819 million in 2017. The Association has further noted that the USA and the EU continued to be the two largest buyers of Sri Lankan garments, in both volume and value terms.
“This achievement is in line with the second strategic plan that was prepared for the industry and this feat was achieved despite many external challenges. The consistency in the approach of the industry to be a reliable partner in ensuring in time delivery, guaranteed product quality, speed to market, ethical practices and innovative solutions has created the environment to achieve this extraordinary feat,” the statement has added.
According to reports, Sri Lanka’s textile and apparel industry employs nearly 350,000 workers directly and twice as many indirectly. Total employment is estimated to be in the region of 15% of the country’s workforce.
The contribution of the textile and apparel industry to the GDP is in the region of 6%, based on re-based GDP estimates.
“The desire of the apparel industry is to reach a target of US$ 8 billion by 2025, which requires a 6% annual compound growth, which is a very ambitious target. While the industry by itself will take all possible steps to meet capacity, technology, and resource issues, the envisaged market access programs through regional, multi-lateral, or bi-lateral trade arrangements are also extremely important, particularly with emerging markets such as India, China, and Brazil. Sri Lankan apparel is looking forward to raising the bar to the next level with effective public-private partnerships with the Government on the policy making,” the statement by JAAF has stated.
OSL take:
The statement by the JAFF on the target of US$ 8 billion export earnings target by 2025 is indicative of many investment opportunities in Sri Lanka’s textiles and apparel sector. The EU’s GSP Plus and US GSP facilities have helped Sri Lankan apparel exporters gain access to international markets with competitive rates. The country also has free trade agreements with many countries that have also helped Sri Lankan exporters, especially businesses in textiles and apparels. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s apparel industry.
| Article Code : | VBS/AT/24012019/Z_1 |