September 24, 2024
By: Isuru Parakrama
September 24, Colombo (LNW): Sri Lanka’s apparel sector recorded a significant milestone in August, crossing the US$ 3 billion mark in export earnings for the year, buoyed by robust performance across major markets.
The sector witnessed impressive double-digit growth, with a 22 per cent year-on-year (YoY) rise in August, underscoring the industry’s resilience in the face of global economic challenges.
According to provisional data released by Sri Lanka Customs, the apparel industry generated US$ 485.62 million in export revenue in August alone, marking a strong month for the sector.
This growth was driven by positive trends across all major export markets, with the United States and European Union contributing significantly.
Exports to the United States surged by 22.9 per cent YoY, reaching US$ 209.4 million, while exports to the European Union saw an 18.84 per cent YoY rise to US$ 140.51 million.
In addition, exports to the United Kingdom increased by 17.74 per cent, totalling US$ 62.39 million, and other global markets saw a remarkable 30.91 per cent YoY growth, generating US$ 73.32 million.
This robust performance in August helped push cumulative export earnings for the apparel sector to US$ 3.158 billion for the first eight months of 2024.
This represents a 2.41 per cent YoY increase, demonstrating the sector’s capacity to maintain growth amidst global economic pressures.
While exports to the European Union experienced a slight contraction of 1.16 per cent YoY, totalling US$ 914 million, other markets showed positive trends.
The United States, Sri Lanka’s largest apparel export destination, saw a 1.82 per cent YoY increase, with total exports reaching US$ 1.26 billion.
The United Kingdom recorded a stronger 8.49 per cent YoY growth, with exports amounting to US$ 462 million, and other markets grew by 5.36 per cent YoY to US$ 513 million.
The growth in apparel exports reflects the sector’s ability to adapt and thrive in challenging conditions, contributing significantly to Sri Lanka’s economic recovery.
The sector continues to benefit from strong demand for Sri Lankan-made garments, particularly in markets such as the United States, the European Union, and the United Kingdom.
Industry experts believe that sustained demand, coupled with Sri Lanka’s competitive pricing and quality standards, will support further growth in the coming months.
However, challenges such as fluctuating global demand and economic uncertainties in key markets could impact future performance.