Sri Lanka’s garment and textile exports fell during July on the back of lower demand from the US and Canada, according to official data from the Central Bank of Sri Lanka, but saw growth of nearly 5% year-to-date.

Data shows a 0.2% drop in exports for the month of July, which the body attributed to a decline in demand from the US and “non-traditional markets” such as Canada, the UAE and Australia, and the base effect, which reflected significantly high export earnings in July 2017.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Despite a weaker July, overall, Sri Lanka’s garment and textile exports for the January to July period have grown 4.7% to US$2.98bn.

Garments grew 3.7% to US$2.79bn year-on-year and textiles enjoyed a 21.2% increase to US$143.2m.

According to re:source by just-style — the online strategic planning tool — apparel and textiles make up Sri Lanka’s largest export sector, accounting for around 47% of total exports. The country’s success as a supplier has been bolstered by reliability, product innovation, design services, strict compliance with international standards, and investment in the industry’s first ‘green’ garment factories. The industry is moving from a manufacturer driven business to an end-to-end fully-integrated apparel solutions provider. 

See Also:

Sri Lanka benefits from trade preference agreements with Canada, Japan and the EU. It has been looking at ways to grow its apparel export business. Last month Sri Lanka’s government announced it was cutting the rate of VAT on fabric imports from 15% to 5% in a bid to help the apparel industry.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

It also made a near-US$50,000 investment in its garment manufacturing factories in the northern part of the country.