Reaching a significant milestone of $4.57 billion, Sri Lanka’s apparel and garment exports increased by 5.42 per cent during the January–November 2025 period. This growth is largely attributed to a high-value transition towards the European Union, where shipments increased by 13.07 per cent to reach $1.43 billion. While traditional monthly volumes saw a minor 1.96 per cent softening in November due to inventory adjustments, the sector has maintained its dominance, accounting for over 52 per cent of total industrial exports.
Resilience amid cost pressures
The industry is currently navigating a complex landscape defined by rising operational overheads. With cost-reflective electricity tariffs slated for 2026 and ongoing minimum wage revisions for approximately 360,000 workers, manufacturers are transitioning from volume-based competition to specialized technical textiles. According to the Joint Apparel Association Forum (JAAF), the focus has shifted toward ‘ethical manufacturing’ and ‘digital product development,’ allowing the island to secure higher margins despite a 1.73 per cent modest growth in the price-sensitive US market.
Value addition offsets textile dip
While finished garment exports flourished, raw textile exports eased as local producers optimized domestic supply chains and utilized existing stocks. However, the export of ‘other manufactured textile articles’ grew, reflecting a successful move into niche, value-added products. This structural shift is critical as the industry eyes an ambitious $8 billion target, leveraging its reputation for sustainability and sophisticated supply chain solutions to mitigate global demand volatility.
Sri Lanka’s apparel sector is a primary foreign exchange earner, employing roughly 350,000 people directly. Historically a low-wage producer, it now focuses on high-end, ethical manufacturing for global brands. Current growth plans target market diversification into India and the Middle East to maintain a positive financial outlook through 2026.
