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Last Updated : 2024-05-02 20:46:00
Sri Lanka’s largest industrial exporter, the apparel sector, saw its performance for the whole of 2023 dip significantly, with its earnings contracting by 19 percent year-on-year (YoY).
The local apparel sector saw its export revenue for 2023 reach US $ 4.5 billion. This is an improvement when compared with US $ 4.15 billion fetched in 2020, the year of the pandemic but a contraction when compared with the performance recorded in 2021 and 2022. In 2021, the apparel sector generated revenues amounting to US $ 5.01 billion, whereas in 2022, the revenue expanded to US $ 5.6 billion.
The provisional data from Sri Lanka Customs shows that exports to all markets saw a contraction in 2023, when compared with 2022.
While the largest contraction is seen in exports to the United States, where exports dipped by 22 percent for the whole of 2023, exports to the European Union, United Kingdom and other markets dropped by 17 percent, 13 percent and 18 percent.
When looking at the apparel sector performance in December, the export revenue dipped by 8 percent YoY to US $ 415 million.
Only exports to the United Kingdom grew by 1.7 percent but exports to the United States, European Union and other markets reduced by 5 percent, 12 percent and 13 percent.
Since September 2022, the apparel export earnings have been on a downward trend, on a YoY basis, primarily due to the economic slowdown in major Western markets.
However, when compared with the performance recorded in November 2023, the apparel sector exports grew by 12 percent month-on-month (MoM). With November 2023 too having recorded a 12.4 percent MoM growth from October 2023, the improvement signals the possibility of the order books slowly but steadily increasing, especially with the seasonal demand.
Speaking to Mirror Business, Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence said the industry expects 2024 to remain relatively flat, with some growth later in the year.
“It’s absolutely vital that the offer from Sri Lanka remains price competitive, making positive steps in trade facilitation to avoid losing to competitor countries,” he said.
The competitors such as Bangladesh, for example, saw revenue from apparel expand by around 3 percent in 2023, while Sri Lanka lost 20 percent.
Apparel is Sri Lanka’s largest industrial export and it earned US $ 5.95 billion in 2022. The country’s apparel sector has about 300,000 employees, most of whom are women.
Sambo Tuesday, 23 January 2024 07:56 AM
This year it will be even worse with the tax hikes and the stupid economy policy they are taking.
Sokrates Tuesday, 23 January 2024 09:46 AM
The biggest problem is the Ranil regime's shabby and detrimental treatment of the entire export economy that brings in the foreign currency. The central bank must immediately stop manipulating the rupee and keeping it artificially high on government orders. It is essential to allow the rupee to float freely in order for Sri Lankan products to be competitive in the global market. Furthermore, the senseless bureaucratic hurdles for exporters must be abolished.
Kandiah Balendran Tuesday, 23 January 2024 09:56 AM
Because profits are hidden overseas. That is the dip in earnings coming to SL.
Jude Tuesday, 23 January 2024 10:19 AM
Garments industry in SL at a slow death!! Only way to revive, move to Vietnam, YEAH.
Joe Tuesday, 23 January 2024 06:31 PM
Sri lanka never had a garment industry. It's largely a cut and saw industry for few individuals to profit and uneducated poor youth to earn a meager salary. Should've been killed off decades ago and moved to tech manufacturing. Without never having a visionary leader since independence, now it's too late.
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