Sri Lanka’s textile and apparel industry experienced a modest decline in exports for August 2025 compared to the previous year, yet it has remained on an upward trend for the first eight months of the year.
In August, Sri Lanka apparel exports totaled $479.14 million, reflecting a decrease of 1.33% year-on-year, according to data from the Joint Apparel Association Forum (JAAF).
While the sector saw a slight increase of 0.92% in shipments to the United States, exports to the European Union and the UK experienced drops of 4.83% and 2.6%, respectively. Exports to other international markets, however, remained stable compared to the previous year.
Despite this monthly downturn, the industry has demonstrated remarkable resilience during the initial eight months of 2025. Overall exports grew by 7.48%, reaching $3.39 billion, up from $3.16 billion during the same timeframe in 2024.
The EU continues to be a key contributor to this growth, with Sri Lanka apparel exports increasing significantly by 14.66%. The US market also contributed positively with a 2.58% rise, while the UK saw a growth of 4.54%, and other global markets increased by 9.45%.
“The month of August reflects the volatility in global markets, with pressure on exports to the EU and UK. However, our year-to-date performance demonstrates resilience, particularly with strong growth into the EU. The industry continues to face challenges but remains focused on competitiveness, diversification, and sustained engagement with key trading partners,” JAAF stated.
Furthermore, JAAF has reaffirmed its commitment to working alongside policymakers and industry stakeholders to ensure the stability of Sri Lanka’s apparel sector and to capitalize on emerging opportunities amid global uncertainties.
Recently, the UK government announced the Developing Countries Trading Scheme (DCTS), which features more flexible rules of origin expected to provide significant benefits to the textile and apparel industry.
Set to be implemented at the beginning of 2026, this scheme has been positively received by Sri Lanka’s JAAF.
