According JAAF’s data for April 2026, Sri Lanka’s total apparel exports dropped 4.72% year-on-year to $328.15m, compared to $344.40m in the same month of the previous year.
The figures show exports to the UK fell by 16.91%, those to the EU by 8.78%, and to the US by 3.46%.
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However, exports to other destinations increased by 12.61%, supporting JAAF’s view of the potential benefits of pursuing diversification beyond traditional markets.
For the four-month period from January to April 2026, apparel exports totalled $1.53bn, marking a 7.47% decline on the corresponding period in 2025.
The industry continues to face challenging global demand conditions, with the largest decreases seen in its primary Western markets.
JAAF acknowledged these difficulties and outlined the necessity for Sri Lanka’s apparel sector to reinforce its overall competitiveness, streamline costs, and capitalise more strongly on higher-value market segments.
JAAF stated: “the industry’s long-term strength remains intact, but the path forward requires a more focused national effort.”
To move beyond current export levels and work towards the $5bn mark in exports, JAAF highlighted the need for consistent government policy, reforms in energy costs, trade facilitation improvements, skills development, and stronger positioning not just in established markets, but in newer ones as well.
JAAF added: “Sri Lanka must support the sector with policy consistency, energy cost reforms, trade facilitation, skills development, and stronger positioning in both traditional and emerging markets.”
For Sri Lanka, the apparel sector remains a major earner of foreign exchange for Sri Lanka and JAAF emphasised that recovery and future growth in the sector will be a key contributor to the wider export economy.
The update follows reforms to the UK’s Developing Countries Trading Scheme that gave Sri Lanka’s fashion manufacturers tariff-free access to the UK, starting from 1 January 2026.
The change is expected to significantly increase garment exports from the country in future.
