Last year Sri Lanka’s apparel exports grew five per cent. A six per cent growth is expected this year. Due to terrorist attacks the industry is facing several challenges. One of the key issues being faced by the industry is meeting delivery deadlines set by buyers. Expansion and investment procedures have been halted and some factories are unable to meet deadlines. Other affects include: delay in clearance of raw materials from ports due to heightened security and wariness of transporters to undertake transporting of goods due to long wait times and security checks. Vessel schedule of import cargo are being changed by freight companies. Worker absenteeism is causing production delays. Service providers and suppliers are unable to function on time, causing delays in garment testing and procurement of locally sourced raw materials. Blocked social media hinders customers from using these to communicate business deals.

Buying trips to Sri Lanka are being cancelled. This will result in fewer order placements and some customers are contemplating completely pulling out of Sri Lanka. Thus the demand for Sri Lankan products within the world market reduces. This paves the way for competing markets to take the position that Sri Lanka held so far.