Sri Lanka’s July apparel exports grew 12.1 per cent. Exports to the EU increased 16.35 per cent and to the US 7.8 per cent. Exports to other countries increased 12.7 per cent. Half yearly exports were up five per cent.

Sri Lanka expects apparel exports to the EU to grow above 10 per cent in 2018. New clients are switching from East Asian destinations to Sri Lanka over US-China trade war fears. The US is the biggest buyer of Sri Lankan apparel, growing 3.8 per cent. Exports to the EU are a close second, growing 7.8 per cent.

The trade dispute between the US and China is helping Sri Lankan apparel exports to the US. However, there’s concern about the European markets due to the weather conditions. Because of long winter in Europe, the retail sector slowed down as the long winters cause people to spend lesser time in shopping. Some manufacturers in Sri Lanka are still engaged in manufacturing basic apparel despite the country’s gaining the GSP Plus concession last year. What the industry is also doing is upgrading itself to the next level by focusing on high tech and designer apparel.