Sri Lanka’s apparel sector records growth of 2.8 percent in November 2019 from a year earlier
An official from Sri Lanka’s apparel sector has reportedly stated that that country’s apparel exports have recorded a growth of 2.8 percent to US$ 459 million from a year earlier in November 2019 due to an increase in production capacity and re-routing of supply chains amid the US-China trade war.
“Sri Lanka’s apparel exports increased in the November period because most of the Sri Lankan manufactures expanded their internal production capacity in 2019,” Sri Lanka Apparel Exporters Association (SLAEA) Chairman Rehan Lakhany has been quoted as saying in the local media.
“The US-China trade war to some extent helped with orders diverted to Sri Lanka, so it was in our favour.”
According to SLAEA data, Sri Lanka’s total apparel exports from January to November 2019 grew 5.8 percent to 4.85 billion US dollars, the highest ever.
Apparel exports to the European Union (EU) have grown 10.99 percent to US$ 191.0 million in November 2019 compared to the same period in 2018.
The total exports to the EU from January to November in 2019 were 5.7 percent or US$ 2.03 billion, which is an increase from 2018.
Lakhany has told the local media that exports to the EU have increased with continued leverage of the GSP Plus tax concessions and market certainty with Brexit coming to a conclusion.
OSL take:
Sri Lanka’s apparel sector has greatly benefited from the many trade agreements as well as trade concessions enjoyed by the country. Theu have had a direct impact on the growth in Sri Lankan apparel exports. Also, the overall business conducive environment and the ease of doing business environment in the country have helped Sri Lankan businesses grow and expand. Foreign businesses could therefore explore business/investment opportunities in Sri Lanka’s apparel sector and also look at possibilities of becoming a raw material supplier to the industry.
| Article Code : | VBS/AT/20200120/Z_3 |