Sri Lanka’s apparel exports during January to October grew 4.4 per cent year on year. Exports to the US grew 4.5 per cent year on year and exports to the European Union grew 4.2 per cent year on year.

October apparel export earnings declined one per cent year on year. In October, apparel exports to the US slowed down 6.5 per cent year on year. Apparel exports to the EU recorded a growth of 3.1 per cent year on year. Sri Lanka’s apparel exports were impacted by sluggish retail markets in the EU and US as well as fierce competition among global suppliers. It is estimated that there’s four per cent oversupply in the global apparel market. Sri Lanka is not able to fully capitalise on the US-China trade war, as Sri Lankan manufacturers don’t have the capacity to cater to the export orders that China is losing.

The country expects apparel export earnings would average around $450 million in November and December, enabling the industry to cross the $5 billion mark. Apart from Bangladesh and Vietnam, some African nations such as Ethiopia are also emerging as major apparel exporters to the US and EU, as they have the capacity to manufacture garments at a lower cost while meeting the necessary sustainability standards demanded by US and EU retailers.