Sri Lanka’s garment sector began 2026 with a small but notable setback, as Sri Lanka apparel exports January 2026 declined 2.66% year on year amid what industry officials described as “continued pressure” across major destination markets.
Data from the Joint Apparel Association Forum (JAAF) shows total apparel exports of $425.44m for the month, down from $437.07m in January 2025. JAAF said the figures reflect uneven global demand and reinforce the need to strengthen “diversification and competitiveness” as manufacturers navigate shifting order patterns.
Exports to the US fell 2.73% year on year to $165.11m in January 2026, and were also below the $178.29m recorded in the previous month. Shipments to the EU (excluding the UK) slipped 1.93% to $126.99m, down from $141m in December 2025. Exports to other destinations declined 6.07% to $71.63m.
The UK remained comparatively steady, with exports edging up 0.23% year on year to $61.71m in January 2026. The marginal improvement comes after a strong December, when UK-bound shipments rose 12.95% to $55.12m.
JAAF linked the UK’s resilience to trade reforms introduced under the revised Developing Countries Trading Scheme (DCTS), which took effect on 1 January 2026. The updated rules of origin now allow Sri Lankan apparel manufacturers to export clothing tariff-free into the UK even when sourcing inputs globally, rather than being restricted to a limited set of Asian supply countries.
The association also said exporters are operating with greater short-term clarity in the US after the introduction of a uniform 10% temporary tariff, which replaced earlier higher country-specific rates and reduces near-term uncertainty in pricing discussions.
JAAF said: “While the overall decline in January is moderate, it reflects continued volatility in global demand. The industry remains focused on strengthening resilience through market diversification, product innovation, and operational efficiency, while working closely with stakeholders to protect Sri Lanka’s position as a trusted apparel sourcing hub.”
As manufacturers respond to shifting demand across the US and EU, JAAF said the January results underline why Sri Lanka apparel exports January 2026 should be read as a signal to accelerate competitiveness measures rather than a one-off monthly fluctuation.