Sri Lanka’s apparel export earnings expanded by 30 per cent year-on-year (Y-o-Y) to US $ 446 million in May 2022.
The Joint Apparel Association Forum (JAAF) has thanked all industry stakeholders for their outstanding resilience in ensuring that the sector continued to meet its commitments in the face of unprecedented challenges.
Accounting for approximately 6 per cent of Sri Lanka’s Gross Domestic Product (GDP) and almost half of all merchandise exports, the apparel sector serves as a bulwark of the nation’s economy.
While the sector continues to face significant limitations from continuing disruptions in energy supply and logistics, cumulative export earnings from the sector increased by 16 per cent on yearly basis to US $ 2.20 billion during January to May 2022.
“We are still hopeful of achieving the sector’s target of US $ 6 billion by the end of 2022; however, we acknowledge that there are significant obstacles ahead that we will first have to overcome. It is, therefore, essential that all possible support is provided to the sector to continue operating,” said Yohan Lawrence, JAAF Secretary General, adding, “In addition to ensuring that large manufacturers are able to maintain production, much more needs to be done to prioritise support for SME apparel producers, who are an equally essential component of the industry that is also facing severe challenges in day-to-day operations.”
Despite unprecedented domestic volatility, unstable global market conditions and escalating raw material and logistics costs, Sri Lanka’s apparel sector has provided extraordinary support to the national economy, including direct surrender of export proceeds to the Government.
“All apparel companies receive payments through the formal banking system, which is visible at all times to the Central Bank. Once they receive these funds, they are permitted to use these dollars to fund raw material imports, which in previous years stood at approximately US $ 2.50 billion annually,” commented Yohan.
Yohan further stated that, moving forward, the apparel industry remains totally committed to doing all that can help the nation move past this unprecedented crisis.
“There is still a great deal of potential for new investments, and capacity expansions including domestic production of raw materials to supply our manufacturing base. Such development hinges on the extent to which the Government delivers on the widespread and clear demands of the Sri Lankan people for meaningful economic and political reforms,” reiterated Yohan.
Despite the ongoing crisis, the outlook for Sri Lankan apparel is still considered positive, as evidenced by the continuing Foreign Direct Investment (FDI) inflows to Sri Lanka which have mirrored upward trends in export performance, recording 17 per cent yearly growth upto June 2022. At present, US $ 73 million worth of investments have been committed for expansions in the apparel sector in 2022 – as per JAAF, out of a total apparel investment pipeline of US $ 94 million.
“We are extremely grateful to all our employees for their commitment towards keeping the industry running, against all odds. We will continue to work hard to maintain our global reputation as a reliable sourcing destination for high-end apparel, while also doing our utmost to support the economy at this time,” concluded Yohan.
Bharat Tex Special Report 2026 
