Apparel Industry records Robust Growth in August with US $485.62 million exports

By: Staff Writer

September 24, Colombo (LNW): Sri Lanka’s apparel industry has significantly advanced from traditional exports and tailoring to delivering comprehensive solutions, creativity, and expertise in areas such as BPO services, fashion, research and development, and innovation centers. This progress helps bridge the gap between the country’s developing and developed markets. Sri Lanka now boasts the highest per capita apparel exports among exporting countries in the region.

In August, the country’s apparel sector surpassed the US $3 billion earnings mark, recording a notable double-digit growth. Export revenues for the industry surged by approximately 22% year-on-year (YoY) for the month. The Sri Lankan apparel market is projected to generate an estimated US $1.70 billion in 2024, with a projected annual growth rate of 2.00% from 2024 to 2028.

According to provisional data from Sri Lanka Customs, the sector’s export earnings in August totaled US $485.62 million. All key markets showed positive growth. Exports to the United States rose by 22.9% YoY, reaching US $209.4 million, while exports to the European Union grew by 18.84% YoY to US $140.51 million. Exports to the United Kingdom and other regions increased by 17.74% and 30.91% YoY, bringing in US $62.39 million and US $73.32 million, respectively. With this strong August performance, the sector’s cumulative export earnings surpassed US $3 billion.

For the first eight months ending in August, the sector generated US $3.158 billion, reflecting a 2.41% YoY increase. Cumulative data show positive export trends across all markets except the European Union, where a marginal 1.16% decline was recorded. Exports to the United States, the United Kingdom, and other regions increased by 1.82%, 8.49%, and 5.36% YoY, amounting to US $1.26 billion, US $462 million, and US $513 million, respectively. Exports to the EU reached US $914 million.

In 2024, women’s apparel is expected to dominate the market with a volume of US $0.85 billion. On a global scale, the United States leads the apparel industry, projected to generate US $359 billion in 2024. In Sri Lanka, the apparel sector is expected to generate US $77.29 per capita in 2024. By 2028, the volume of Sri Lanka’s apparel market is forecasted to reach 250.9 million pieces, although a slight decline of 0.8% is anticipated in 2025. On average, each person in Sri Lanka is expected to contribute 11.8 pieces of apparel to the market in 2024, with 96% of total sales coming from non-luxury items. The country is also experiencing growing demand for sustainably and ethically produced clothing.