According to data released by the Joint Apparel Association Forum (JAAF), total exports during the month reached $425.44m compared with $437.07m in January 2025.
Shipments to the US declined by 2.73% year-on-year (YoY) to $165.11m in January 2026, down from $178.29m recorded in the previous month.
Exports destined for the EU, excluding the UK, also registered a decrease of 1.93%, totalling $126.99m in January 2026. This is also down from $141m registered in December 2025.
The UK market continued to be stable for Sri Lankan apparel, with a slight increase of 0.23% to $61.71m in January 2026. This follows a 12.95% rise to $55.12m seen in December 2025.
Exports to other destinations experienced a decrease of 6.07% during January 2026, accounting for $71.63m.
JAAF stated that the January results indicate uneven global demand and underscore the need to enhance “diversification and competitiveness”.
The UK’s marginal growth at the start of the year coincides with trade reforms under the revised Developing Countries Trading Scheme (DCTS), which took effect on 1 January 2026.
These changes have eased rules of origin requirements, now allowing Sri Lankan manufacturers to export clothing tariff-free into the UK even when sourcing raw materials globally rather than just from selected Asian countries.
In addition, the introduction of a uniform 10% temporary US tariff has replaced earlier higher country-specific rates and provides greater short-term pricing certainty for Sri Lankan exporters.
JAAF said: “While the overall decline in January is moderate, it reflects continued volatility in global demand. The industry remains focused on strengthening resilience through market diversification, product innovation, and operational efficiency, while working closely with stakeholders to protect Sri Lanka’s position as a trusted apparel sourcing hub.”
