Sri Lankan apparel and textile export earnings have fallen 1.5% during the first eight months of 2017, despite an improvement in clothing shipments to the US and European Union markets.
According to the latest data from the Central Bank of Sri Lanka, earnings from textile and garment exports fell to US$3.28bn from January to August 2017, compared with $3.33bn in the same period last year.
Go deeper with GlobalData
Results for the first six months had shown a 5.2% decline as a result of a drop in shipments to the US and EU, but this has now rebounded.
Sri Lanka books H1 apparel export earnings fall
Executives from Sri Lanka’s apparel sector are predicting exporters can generate an extra $400m to $500m in annual sales after the country regained the Generalised Scheme of Preferences Plus (GSP+) duty-free trade concession with the EU.
The country had lost the trade benefit in 2010 because of human rights violations during the previous government of ex-President Mahinda Rajapaksa. Earlier this year the European Commission proposed that the EU remove duties on 66% of tariff lines imported from Sri Lanka, including textiles and clothing, to restore its GSP+ status.
In the eight-month period, apparel exports dropped 1.9% to $3.09bn, while textile exports jumped 10.9% to $137.8m.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
