Sri Lanka’s apparel exports could decline by $1 billion this year

Colombo (News 1st) - Sri Lanka’s clothing export revenues could decline by $ 1 billion this year in comparison to the $5.95 billion of 2022, a top official of the Joint Apparel Association Forum of Sri Lanka (JAAF) told News 1st.
The apparel sector is currently the country's leading export industry, accounting for around 44% of total exports and providing employment for approximately 33% 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 US $ 5.95 billion 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% year-over-year fall in apparel and textile exports to US $ 1.3 billion, 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 billion, with exports increasing by 22.93% compared to the previous year.