Apparel exports dip in January as global demand wavers

Sri Lanka’s apparel exports fell 2.66 percent in January 2026 to US $ 425.44 million, from US $ 437.07 million a year earlier, reflecting the persistent pressure across key markets.

Exports to the United States dropped 2.73 percent to US $ 165.11 million, while shipments to the European Union, excluding the UK, declined 1.93 percent to US $ 126.99 million. The UK market, however, showed stability, rising slightly by 0.23 percent to US $ 61.71 million. Exports to other markets fell 6.07 percent to US $ 71.63 million.

The UK’s modest growth coincides with the revised Duty Credit Trading Scheme, effective from January 1, 2026, which is expected to improve sourcing flexibility and competitiveness. Additionally, the move to a uniform 10 percent temporary US tariff has eased earlier country-specific rates, providing the exporters with greater pricing certainty.

“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 the stakeholders to protect Sri Lanka’s position as a trusted apparel sourcing hub,” the Joint Apparel Association Forum said in a statement.