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Daily Newsletter

27 October 2025

Daily Newsletter

27 October 2025

Sri Lankan apparel exports post modest growth despite US and UK declines

Sri Lanka's garment industry recorded a mild year-on-year (YoY) increase in exports in September 2025, driven by stronger performance in the EU and other markets, according to data from the Joint Apparel Association Forum (JAAF).

Jangoulun Singsit October 27 2025

Apparel exports rose 1.58% from September 2024 to a little over $403m, despite a downturn in shipments to the US and the UK.

However, this was lower than August 2025, when apparel exports reached $479.14m. This is consistent with the historical pattern of September exports generally being below August’s.

Exports to the US and UK fell 4.71% and 15.06%, respectively. Those declines were more than offset by a 10.75% rise to the EU and a 19.49% increase to other markets.

In terms of broader industry growth during the first nine months of the year, JAAF reported sustained progress despite varying market trends by month.

Total apparel exports from January to September 2025 stood at $3.79bn, marking a 6.83% increase from $3.55bn during the same period last year.

During this nine-month timeframe, US-bound exports grew by 1.73%, amounting to $1.46bn, while exports to the EU rose by 14.24% to reach $1.17bn.

The UK market saw a modest rise of 2.31%, totalling $533.73m, alongside a 10.45% expansion in other markets, resulting in $630.29m.

JAAF stated: “While demand from some traditional markets continues to fluctuate, our exporters have demonstrated remarkable adaptability through efficiency, innovation, and market diversification. The positive cumulative growth highlights the strength and competitiveness of Sri Lanka’s apparel sector even amid global headwinds.”

The association commits to ensuring policy alignment with Sri Lanka's government and industry stakeholders, and to fostering the growth of small and medium manufacturers.

Recently, the World Bank issued a warning that a “baseline” tariff of 20% imposed on all Sri Lankan freight by the Trump administration could decrease the nation's garment exports to the US by up to 12%.

The Business & Human Rights Resource Centre, a non-profit human rights organisation, said that such a reduction could place substantial stress on employment, particularly impacting low-skilled workers and women.

Last month, approximately 500 employees from a garment factory located in the Katunayake Free Trade Zone staged a protest against an alleged decrease in employee rights due to a recent 10% reduction in tariffs on Sri Lankan exports to the US.

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