Decline in Sri Lanka's apparel exports continues

Sri Lanka's apparel export earnings maintained their downward trajectory in November, experiencing a 12.68 percent Year-on-Year (YoY) contraction, totaling US$ 371.17 million. 

The continued decline, observed since September 2022, is attributed to the economic slowdown in major Western markets.

While the apparel sector showed signs of improvement compared to September and October figures, reaching US$ 333.18 million and US$ 330.95 million, respectively, the November earnings, though still contracting, suggest a potential turnaround, potentially driven by seasonal demand.

According to provisional data released by the Joint Apparel Association Forum (JAAF), the United Kingdom emerged as a positive outlier, with exports showing a 19.7 percent YoY growth, totaling US$ 48.34 million. In contrast, exports to the United States declined by 15.12 percent YoY to US$ 141.09 million, and earnings from the EU contracted by 7.18 percent YoY to US$ 126.62 million. Exports to 'other' markets experienced a significant decline of 32.87 percent, amounting to US$ 55.07 million.

For the first eleven months of the year, Sri Lanka's apparel export earnings totaled US$ 4.1 billion, marking a substantial 19.58 percent YoY contraction. Notably, the United States witnessed the highest contraction, with export earnings decreasing by 23.81 percent YoY to US$ 1.63 billion. Similarly, earnings from the EU and the United Kingdom declined by 17.81 percent YoY and 13.76 percent YoY, amounting to US$ 1.26 billion and US$ 572 million, respectively. Exports to 'other' markets contracted by 18.17 percent YoY, reaching US$ 642 million.

As Sri Lanka's largest industrial export, the apparel sector plays a crucial role in the country's economy, employing approximately 300,000 people, predominantly women. With the sector having earned US$ 5.95 billion in 2022, the JAAF anticipates a decline of approximately one billion dollars in this year's apparel and textile export earnings compared to the previous year, highlighting the challenges faced by the local industry amidst global economic uncertainties.