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June 20, 2022

The week in review: The future of Sri Lanka’s apparel industry

Sri Lanka's clothing exports are expected to fall by a quarter in the June to August period, however there is hope for the sector with one leading fashion manufacturer keen to increase its sourcing to the region.

By Laura Husband

This year has undoubtedly been an uphill struggle for Sri Lanka and last week the country’s central bank governor added an extra blow by saying it could have avoided its current economic turmoil if it had gone to the International Monetary Fund (IMF) for a bailout sooner. 

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How can brands navigate the post-COVID-19 Apparel market?

In 2021, the Global Apparel market remained at 3% below pre-pandemic levels, with Europe and LATAM lagging behind. If they want to see full recovery, brands must look ahead. GlobalData is therefore offering this free report, Future of the Apparel Market Post Pandemic, to assist companies in adapting to the future market. This report explores the following topics:
  • Latest forecasts for the online apparel market out to 2025
  • How different regions and categories will perform, including which regions are lagging behind and which are performing at pre-pandemic levels
  • Which categories within the Apparel market are displaying resilience
  • Which brands are driving online spending
  • Impact of inflation on the Global Apparel market
  • What the biggest trends are that apparel businesses must adopt to succeed
Read our report on the Future of the Apparel Market Post Pandemic to gain valuable insights on how to best position your brand in a post-COVID-19 world.
by GlobalData
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Sri Lanka is seeking US$5bn this year in support from the international community, including the IMF, and the BBC has reported the country defaulted on its foreign debt for the first time in its history last month.

The story is not any brighter for Sri Lanka’s apparel industry with Sri Lanka’s Joint Apparel Association Forum (JAAF) secretary-general Yohan Lawrence telling Just Style its clothing exports are expected to fall by a quarter in the June to August period this year.  

He says the organisation is pressing the government to start discussions with credible policy and industry experts towards rapid development of a practical, apolitical ‘Roadmap for Sri Lanka’s Economic Recovery’. However, he points out that despite there being ongoing efforts to get bilateral funding, it is nowhere near enough. 

Arguably, the saving grace for Sri Lanka’s apparel sector will be the loyal brands and manufacturers that continue to source apparel from the South Asian island. 

The president of Italian fashion brand Calzedonia has, for example, announced plans to increase sourcing from the country during these challenging times. 

Sandro Veronesi says in an interview he has faith in Sri Lanka’s ability to adapt and believes maintaining its sights on the future will help the nation to overcome this crisis. 

Elsewhere on the apparel sourcing front, the US continues to concentrate its efforts on nearshoring, so we could see central American nations such as Honduras prosper in future. 

In fact, Pedro José Barquero Tercero, the Secretary of Economic Development for Honduras suggests the country’s proximity to the US and its qualified workforce are already making it an increasingly attractive option for US-based apparel companies. 

Financial losses loom for Sri Lanka apparel sector

Export earnings in Sri Lanka’s clothing sector for the June to August period are set to fall by 20-25%, with the sector likely to miss the US$6bn export target for the year, as the country’s political and economic crisis continues unabated.

Calzedonia president: “We believe in Sri Lanka’s resilience”

 Despite the economic crisis Sri Lanka finds itself in today, Sandro Veronesi, president of Italian fashion group Calzedonia, has faith in the resilience of Sri Lanka’s apparel industry and plans to increase sourcing from the South Asian island nation.

How to hone apparel sourcing hotspot Honduras’ potential

 Pedro José Barquero Tercero, the Secretary of Economic Development for Honduras, explores how the country has the potential to become a forerunner of economic prosperity.

H&M Group, Norrøna under fire in Norway over environmental claims

Norway’s consumer watchdog has issued warnings to clothing retailers H&M Group and Norrøna over what it deems “misleading environmental claims”, adding their use of the Higg Index is insufficient as a tool to support their environmental claims.

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Free Report
img

How can brands navigate the post-COVID-19 Apparel market?

In 2021, the Global Apparel market remained at 3% below pre-pandemic levels, with Europe and LATAM lagging behind. If they want to see full recovery, brands must look ahead. GlobalData is therefore offering this free report, Future of the Apparel Market Post Pandemic, to assist companies in adapting to the future market. This report explores the following topics:
  • Latest forecasts for the online apparel market out to 2025
  • How different regions and categories will perform, including which regions are lagging behind and which are performing at pre-pandemic levels
  • Which categories within the Apparel market are displaying resilience
  • Which brands are driving online spending
  • Impact of inflation on the Global Apparel market
  • What the biggest trends are that apparel businesses must adopt to succeed
Read our report on the Future of the Apparel Market Post Pandemic to gain valuable insights on how to best position your brand in a post-COVID-19 world.
by GlobalData
Enter your details here to receive your free Report.

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