Country: Sri Lanka

The export earnings of Sri Lanka from its textile and garments sector that contribute nearly 48 per cent to its total export revenue has declined for the third consecutive month by 12.8 per cent in December 2015, when its overall exports declined by 18.7 per cent, year-on-year, to US $817 million.
This figure is mostly a reflection of its low exports to both the EU and USA markets.

Garment exports to non-traditional markets like Canada, China and UAE has, however, increased by 1.7 per cent, year-on-year, during the month. These figures were released by the Central Bank of Sri Lanka in its recent release of External Sector Performance statistics for December 2015.

Also Read – Sri Lankan Apparel Sector Gets New Markets

The overall trade performance for the year 2015 decreased by 5.6 per cent to US$10,505 million, owing to subdued global demand and lower commodity prices. The leading markets for merchandise exports of Sri Lanka during 2015 continued to be the US, UK, India, Germany and Italy, accounting for about 51 per cent of total exports.

Sri Lanka is hopeful to regain the European Union’s trade concession GSP Plus Status, which is supposed to balance out the effects of Trans-Pacific Partnership (TPP) agreement. At the inaugural ceremony of the annual event, ‘Ransalu Textile Expo’ in Colombo, Rishad Bathiudeen Sri Lanka’s Industry and Commerce Minister said, “We are inaugurating this (Ransalu Textile Expo) textile event at a time when our world-class apparel industry is becoming increasingly hopeful on regaining the GSP PLUS facility. There are concerns in trade sectors across the world that Trans-Pacific Partnership agreement could have a negative impact.”

Also Read – Sri Lankan Apparel Sector Gets New Markets

Rishad Bathiudeen further pointed out that the Sri Lankan Government under the guidance of Prime Minister Ranil Wickremesinghe is making efforts to position Sri Lanka among the top 10 high-quality apparel manufacturing countries in the world by 2020.

Also Read – Clothing exports from Sri Lanka on the rise

Sri Lanka’s apparel industry has set a new export target of US $ 10 billion by 2025 and the Government supports it. In 2014, Sri Lanka’s apparel export values summed up to US $ 4.9 billion. The country lost the GSP Plus status in 2010 due to the United Nations Human Rights Council (UNHRC) alleging violations of Human Rights during the civil war. But the new Sri Lankan Government started demanding the regain of GSP plus status owing to fall in country’s apparel export.

Sri Lankan apex export facilitator Export Development Board’s efforts to link with the top global retailers has finally come to fruition wherein the visiting high powered multinational buyer team has linked with EDB and Lankan apparel giants. This was indeed a sudden victory for Sri Lanka where a visiting high powered multinational buyer team, consisting of representatives from the top fashion retailers hailing from Brazil, Australia, India and Denmark finally linked themselves with the EDB.

Sri Lanka has clinched this deal with the help of EDB after three long years of resolute quest. This is a good development for Sri Lankan apparel industry, which has recently set an ambitious new export target of US $ 10 billion by 2025.

Also Read – Intex South Asia 2015: Sri Lanka sets ambitious apparel export target

The visiting representatives in the international buyer team were from Brazil (Casas Pernambucanas, Grupo Guararapes, Cia Herring), Australia (Pilot Athletic, Cotton on Group, Bein Sports, and Auluaulu International), Denmark (Day Birger Mikkelsen), and India (Raymond Apparel Limited).

“EDB’s effort to get new markets and inviting the top international retail representatives to visit Sri Lanka has worked and we thank them,” said Indira Malwatte, Chairperson and CEO of EDB while addressing the global representatives.

Also Read – Clothing exports from Sri Lanka on the rise

Sri Lankan Export Development Board (EDB) has been facilitating Sri Lanka since long, making it famous in the world arena. A year ago in October, the first ever Sri Lankan apparel industry delegation was sent to Inditex, Spain, was also facilitated by EDB.

A spokesman from a leading Sri Lankan apparel manufacturer, Hirdaramani Group mentioned, “We are highly grateful to EDB for linking us to world’s largest textile retailer, Spain’s ‘Zara’ chain. After the talks, Zara has entered Sri Lanka and now we have started working with them.”

Sri Lanka is aiming at a quantum jump in apparel exports despite the market scenario being grim.

“We are looking to increase total apparel exports by five-fold to US $ 20 billion. And by 2020 we are aiming at US $ 50 billion apparel exports, which is an ambitious goal,” said Sujeewa Senasinghe, State Minister of Development Strategies & International Trade at the inauguration ceremony of Intex South Asia International apparel Fabrics and Accessories Exhibition.

Also Read – Clothing exports from Sri Lanka on the rise

Sri Lanka’s apparel export is the main contributor in country’s total exports which stood at US $ 4.5 billion in 2013 and surged by 9 per cent to US $ 4.9 billion in 2014; and in January-September period this year Sri Lanka’s apparel exports fetched US $ 3.6 billion.

Sri Lanka has become a reliable and high quality manufacturer on the global map over the course of time and it caters to reputed international brands like Victoria’s Secret, GAP, Liz Claiorne, Next, Jones New York, Nike, Tommy Hilfiger, Pink, Triumph, Ann Taylor and Speedo to name a few.

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The Colombo exhibition at Sri Lanka Exhibition and Convention Centre, brings together textile manufacturers/exporters, apparel exporters, yarn exporters, fabrics and clothing accessories exporters from India, Pakistan, Bangladesh, Sri Lanka, China, Korea, Taiwan, Hong Kong, and Indonesia under one roof. More than 50 Indian material suppliers are taking part at this event. Sri Lanka’s Export Development Board (EDB) is a co-organiser on the event.

Intex South Asia 2015 is organized in association with Indian cotton textiles Export Promotion Council, Power loom Development Export Promotion Council, Taiwan Textile Federation, Korea Trade Promotion Agency, and Hong Kong Apparel Society.

According to a report in the latest issue of Textile Outlook International from the global business information company Textiles Intelligence, Sri Lanka’s clothing exports are poised for further growth. Country’s clothing exports have done well in recent past. Between 2009 and 2014 it grew by over 51 per cent – despite unfavourable conditions in foreign markets since the global recession in 2009 and the industry’s loss of GSP+ concessions in the EU import market in mid-2010.

The industry has benefited from Government’s initiatives which has been supportive in creating an environment conducive to business in the country and providing tax incentives to encourage foreign direct investment (FDI). At the same time, the clothing industry hopes to secure higher exports to the EU through the restoration of GSP+ concessions. Such restoration would provide exports from Sri Lanka with tariff-free access to the EU markets and could lead to a sizeable increase in clothing shipments.