Sri Lanka’s clothing export revenues could decline by $ 1 bn this year in comparison to the $5.95 bn of 2022, a top official of the Joint Apparel Association Forum of Sri Lanka (JAAF) told.
The apparel sector is currently the country’s leading export industry, accounting for around 44 percent of total exports and providing employment for approximately 33 percent of the country’s manufacturing workforce.
Yohan Lawrence, General Secretary of JAAF, said: “The decline is a result of the slowdown in demand in important export destinations amid growing prices and increased interest rates. Sri Lanka’s top industrial export, apparels, brought in $ 5.95 bn in 2022, helping the nation’s dollar-starved economy. The US, EU, and UK are the top three buyers of clothing and textiles from Sri Lanka.”
“Although the sector does not anticipate significant job losses as a result of the downturn, small and medium-sized businesses may face challenges as the industry adjusts to a slowdown in orders. The apparel sector has about 300,000 employees, most of whom are women,” said Lawrence.
The first quarter of 2023 saw a 13.8 percent year-over-year fall in apparel and textile exports to US $ 1.3 bn, while March exports touched a three-year low.
According to research by the International Trade Administration, Sri Lanka’s apparel export industry has experienced impressive growth over the past forty years, becoming one of the country’s most important economic sectors.
In 2021, the industry reached a value of $5.42 bn, with exports increasing by 22.93% compared to the previous year.
