Sri Lanka’s apparel and textile exports grew 7.96% n May 2026 to $394.14m, described as a sign that demand from key markets is beginning to “firm up after a difficult start to the year.”
The US led the growth, with shipments rising 15.36% to $149.96m. This growth in US-bound exports comes as Sri Lanka prepares for a critical phase in its trade relationship with the US.
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The country is involved in a Section 301 investigation by the Office of the US Trade Representative concerning the prohibition of imports involving forced labour. The investigation may result in an additional tariff of either 10% or 12.5% on affected goods.
According to a US government report published in June, Sri Lanka is named among 46 countries set to face the higher 12.5% tariff rate.
By contrast, Bangladesh, Cambodia, Pakistan and Indonesia were each listed for the lower 10% tariff, having been recognised for actions taken over forced labour concerns.
A public hearing on the tariff proposal is scheduled for 7 July in Washington, with Sri Lankan industry bodies able to apply for a hearing slot until 22 June, making the next coming weeks a critical window for Sri Lanka to make its case.
“May’s numbers are genuinely encouraging, and they reflect the trust our buyers continue to place in Sri Lankan manufacturing even amid a challenging trade environment,” says JAAF.
“Our focus now is on securing a fair and competitive tariff outcome in Washington, so that this momentum can translate into long-term growth rather than a short-term gain. We remain confident that with the right policy support, the second half of 2026 can be considerably stronger for the sector.”
During the month, shipments to markets outside Sri Lanka’s traditional three core destinations rose 14.61% to $70.67m. Exports to the UK recorded an increase of 0.87%, while shipments to the European Union fell slightly by 0.3% to $121.35m.
Despite May’s upturn, JAAF notes that total exports of apparel and textile goods over the first five months of 2026 reached $1.93bn, down 4.68% compared to the same period a year earlier.
All three main export markets, the US, EU and UK, recorded cumulative declines over that period.
