Export earnings of Sri Lanka from its textile and garment sector have declined for the third consecutive month. December 2015 exports fell by 12.8 per cent. Overall exports declined by 18.7 per cent, year-on-year. This figure is mostly a reflection of Lanka’s low exports to both the EU and US markets.

Export earnings of Sri Lanka from its textile and garment sector contribute nearly 48 per cent to its total export revenue.

Garment exports to non-traditional markets like Canada, China and UAE have, however, increased by 1.7 per cent, year-on-year, during the month. The overall trade performance for the year 2015 decreased by 5.6 per cent owing to subdued global demand and lower commodity prices.

The leading markets for merchandise exports of Sri Lanka during 2015 continued to be the US, UK, India, Germany and Italy, accounting for about 51 per cent of total exports.

Sri Lanka’s export earnings, as a percentage of GDP, have been falling for years. Exporters blame growing energy costs and the strengthening rupee, making their products expensive in the global market.

Greater regional integration will help Sri Lanka capitalise on Asia’s growth while product diversification and sophistication would give scope and lift market share.