Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

Recession threatens Sri Lankan exports


A looming recession in export markets is threatening Sri Lanka’s garment sector.

Orders have slowed down significantly since buyers already have stocks with them and they don’t have storage facilities. The dip could slow down Sri Lanka’s efforts to move out of the unprecedented economic crisis that resulted after failed economic policies and heavy money printing. The apparel industry accounts for nearly half of the nation’s total export earnings. Apparel exports have accounted for 57 percent of export earnings in the first nine months of this year.

The world’s leading economies are sliding into recession as the global energy and inflation crises sparked by Russia’s invasion of Ukraine cut growth by more than what was previously forecasted. Over the next two or three months the country’s exporters expect to see a drop of 25 per cent or 30 percent in order volumes. As a result of the disruption caused by Russia’s invasion of Ukraine, Sri Lanka’s traditional markets such as Europe and the US have been reducing exports amid tightening monetary policy to curb increasing inflation.Sri Lanka is forced to look into alternate markets such as India, Russia, Taiwan, and regional countries such as Malaysia and Singapore to boost its exports with or without free trade agreements.


VF Logo