Sri Lanka’s apparel export earnings in November witnessed a slight recovery, totaling US$ 371.17 million, marking an improvement from the downturn experienced in September and October. Despite a persistent year-on-year (YoY) contraction of 12.68 percent, this upward trajectory may signal a potential turnaround for the sector.
The declining trend in apparel export earnings, observed since September 2022 on a YoY basis, has been attributed to the economic slowdown in major Western markets. However, November’s performance showed enhanced earnings in comparison to September (US$ 333.18 million) and October (US$ 330.95 million), possibly influenced by seasonal demand.
Provisional data from the Joint Apparel Association Forum (JAAF) revealed a notable positive growth in exports to the United Kingdom, expanding by 19.7 percent YoY and totaling US$ 48.34 million. Meanwhile, exports to the United States decreased by 15.12 percent YoY to US$ 141.09 million, and exports to the European Union contracted by 7.18 percent YoY, reaching US$ 126.62 million. Additionally, exports to ‘other’ markets experienced a decline of 32.87 percent, amounting to US$ 55.07 million.
Cumulatively, the apparel export earnings for the first eleven months of the year reached US$ 4.1 billion, reflecting a YoY contraction of 19.58 percent. The largest contraction was witnessed in earnings from the United States, declining by 23.81 percent YoY to US$ 1.63 billion. Similarly, earnings from the EU and the United Kingdom decreased by 17.81 percent YoY and 13.76 percent YoY, amounting to US$ 1.26 billion and US$ 572 million, respectively. Exports to ‘other’ markets contracted by 18.17 percent YoY to US$ 642 million.
Sri Lanka’s apparel industry, the largest industrial export, generated US$ 5.95 billion in 2022 and employs around 300,000 individuals, predominantly women. The JAAF anticipates a significant decrease of approximately one billion dollars in this year’s apparel and textile export earnings compared to the previous year.
