Sri Lanka's apparel exports have experienced a significant decline of $900 million in the first nine months of this year, according to a statement by an industry association.
This decline is attributed to a slowdown in global demand, which is impacting the country's largest industrial export. In 2022, apparel exports amounted to $5.95 billion, providing some stability during Sri Lanka's ongoing economic challenges.
However, the latest data from the Joint Apparel Association Forum (JAAF) reveals a 39% year-on-year drop in garment exports up to September, amounting to $3.4 billion.
The most significant decline occurred in exports to the United States, down 31% to $1.4 billion. Exports to the European Union and Britain also experienced decreases of 27% and 23% respectively. T
he JAAF had previously estimated a loss of approximately $1 billion in apparel export earnings for the year, but the current figures suggest that the total could surpass this projection. Despite the challenging situation, Sri Lanka aims to earn around $4.5 billion from garment exports by the end of the year.
The Secretary General of the JAAF, Yohan Lawrence, expressed cautious optimism, stating that while the losses have reached their lowest point, significant recovery is not expected. However, a gradual improvement may be witnessed in the coming year as excess stock is utilized. Despite temporary factory closures, the industry is persevering, and significant job losses are not anticipated. The apparel sector in Sri Lanka employs approximately 300,000 individuals, predominantly women.
