Sri Lanka FY apparel exports surge 20% in value

SRI LANKA: Apparel exports surge 20% in value in 2011

By Richard Woodard | 2 May 2012

The value of apparel exports from Sri Lanka soared by more than 20% to break through the US$4bn barrier in 2011, according to the country's Export Development Board.

Exports to number one destination the US were up by 15.8% to $1.59bn, continuing their recovery from the low points of 2009 and 2010, and nearing pre-recession levels.

Out of Sri Lanka's top 10 markets, only the Netherlands fell, with exports down by more than 20%, but there were rises in the UK (15%), Italy (38%), Germany (19%), Belgium (67%) and France (48%).

Despite concerns about a slowing European economy, total exports to the EU rose 19.9% to just over $2bn, but emerging markets provided the most dynamic growth, with exports to countries outside the US and EU surging up 43.8% to $409m.

Shipments to India, Korea, Saudi Arabia and China all more than doubled, and there was also strong growth in Hong Kong, Australia, Mexico, the Russian Federation and Poland.

Export demand is holding up despite concerns about a slowing European economy thanks to the Sri Lankan apparel industry's focus on ethical manufacturing, factory investment, and the arrival of new international buyers after travel restrictions were lifted following the end of a 25-year civil war in May 2009. Rising prices in China have also led to a shift of some business to Sri Lanka.

The country also appears to have weathered the impact of losing the GSP+ (generalised system of preferences) status with the EU in August 2010. The system had given the country's apparel exports zero duty access to the EU since 2005, and left exports of many goods with a duty of up to 9.6%.

Industry body the Joint Apparel Association Forum (JAAF) has set a target to increase export earnings to US$5bn by 2015.

Sectors: Apparel, Manufacturing, Social & environmental responsibility, Sourcing