Sri Lanka’s garment and textile industry targets US$ 8 billion export turnover by 2025
Daily News: Sri Lanka’s garment and textile industry has an ambitious target of US$ 8 billion export target by 2025 amid the stronger demand witnessed in 2021.
After the dip witnessed in 2020 owing to COVID – 19, recovery in the global context is expected to favor apparel and fabric manufacturers in Sri Lanka, according to FC Research. With imported raw materials amounting to US$ 2- 3.billion, local textile manufactures can significantly enhance their contribution. An opportunity exists for fabric manufacturers (TJL, MGT and HELA) to capture the market share by enhancing its capacity. With an improved industry look, and the continued interest in reducing China exposure, US fashion companies actively explore new sourcing opportunities.
The global apparel market is projected to grow in value from US$ 1.5 trillion in 2020 to about US$ 2.2 trillion by 2025, showing that the demand for clothing and shoes is on the rise across the world.
The apparel industry lost an estimated US$ 342.0 billion in 2020 revenue compared to 2019 due to the COVID -19.
The Asia Pacific region is the largest apparel market in the world, consuming 33% of global demand. Western Europe is second with 28% of the global apparel market, while Africa represents the smallest share of global demand.
More than 85% of respondents plan to increase sourcing from a few Asian countries over the next two years including India, Bangladesh, Indonesia, Philippines, Vietnam, Cambodia and Sri Lanka.
Sri Lanka’s apparel industry is one of the key revenue generators in the country. The industry continued to operate even amidst the Covid 19 pandemic. Also, the many trade agreements as well as concessions enjoyed by the country have helped boost Sri Lanka’s apparel industry in the foreign markets while also remaining competitive. The government of Sri Lanka is also committed to further uplifting and developing the apparel industry by introducing a dedicated fabric manufacturing park to provide the material required by the industry. Given the continuous expansion in Sri Lanka’s apparel industry, foreign businesses/investors could explore the growing opportunities in the industry.
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