Sri Lanka’s apparel exports recorded steady growth in July 2025, rising by 9.84% to $455.16m compared with $414.38m in July 2024.

Exports to the EU (excluding the UK) posted the strongest gain of 26.69%, while shipments to “other” markets grew by 24.24%.

The UK market saw only a marginal increase of 0.72%, and exports to the US declined by 2.7% during the month.

For the period of January to July 2025, total apparel exports reached $2,916.10m, up 9.09% from $2,673.19m in the same period of 2024.

Sri Lanka's growth was broad-based across markets with exports to the EU (excluding the UK) rising by 18.2%, to other” markets by 11.02%, to the UK by 5.65%, and to the US by 2.91%.

A spokesperson for the Joint Apparel Association Forum (JAAF) described the growth seen in July and over the first seven months of 2025 as highlighting the adaptability of Sri Lanka’s apparel industry as well as its firm position in key markets such as the EU.

JAAF's spokesperson added: "This performance reflects manufacturers’ ongoing efforts to meet buyer expectations on speed, quality, and compliance. Sustaining momentum will require expanded trade opportunities, supportive policies, and a stronger focus on value addition across the supply chain.”

Earlier this month (August), the Joint Apparel Association Forum (JAAF) welcomed the UK Government's Developing Countries Trading Scheme (DCTS). It is set to be implemented in early 2026 and introduces a more liberal approach to rules of origin, which is expected to significantly benefit the textile and apparel sector.

For Sri Lankan garment manufacturers the change will mean they can source up to 100% of inputs from any global market while still enjoying zero-tariff entry into the UK.

Sri Lanka is now subject to a 20% tariff on its apparel exports to the US, however JAAF welcomed the revised rate when it was announced earlier this month as it was lower than a previous proposal by the Trump administration.

JAAF said at the time: “The revised tariff rate brings Sri Lanka into closer alignment with other leading apparel-exporting nations in the region — including Bangladesh, Cambodia, Vietnam, Indonesia, and Pakistan — thereby ensuring a more level playing field and preserving the competitiveness of Sri Lanka’s apparel industry in key US markets."

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