European Commission official Roshan Lyman has predicted that Sri Lanka's textile exports to the EU could drop by up to 10 per cent this year as competition from China heightens following the end of global trade quotas, according to Dow Jones Newswires.

Lyman, the EC's trade advisor to Sri Lanka, said that some groups of textile products may see trade fall by up to 25 per cent as China continues to gain monopoly over the market due to its cheap production.

Sri Lanka's shipments of textiles to the EU were valued at €878 million in 2004 compared to a total of €923m exports in 2000.

The EC is in the process of deciding whether or not to limit China's exports of textiles and garments.