Sri Lanka’s garment industry exports face challenges

Sri Lanka’s “Daily Financial Times” reported on May 22 that Sri Lanka’s garment industry exports are facing severe challenges. Sri Lanka’s garment industry exports in April were US$318 million, a sharp decrease of 24% year-on-year, the lowest value in recent years. Exports from January to April were US$1.5 billion, down 17% year-on-year. In April, clothing exports to the United States were US$129 million, a year-on-year decrease of 25.5%, and clothing exports to the EU dropped to US$90 million, a year-on-year decrease of 27.53%. Industry insiders said that the increase in market inventory and the recent increase in Sri Lankan clothing procurement costs are the main factors for the decline in exports. At the same time, because prices in Bangladesh, Egypt, and other African countries are cheaper, customers are often asking Sri Lankan suppliers to reduce prices, and Sri Lanka is rapidly losing its competitive advantage.