FINANCIAL CHRONICLE – Sri Lanka’s apparel exports experienced a decline of 2.66 percent in January 2026, reaching 425.44 million dollars compared to 437.07 million dollars in January 2025, according to an industry body. This decrease underscores ongoing challenges in key export markets.
The Joint Apparel Association Forum (JAAF) stated, “The January performance highlights uneven global demand and reinforces the need to strengthen diversification and competitiveness.”
Export figures to various regions showed a mixed performance. Exports to the United States fell by 2.73 percent to 165.11 million dollars. Meanwhile, exports to the European Union (excluding the UK) decreased by 1.93 percent, totaling 126.99 million dollars. The UK market remained stable with a slight increase of 0.23 percent, reaching 61.71 million dollars. However, exports to other markets dropped by 6.07 percent to 71.63 million dollars, according to JAAF.
Commenting on the marginal growth in the UK, JAAF noted, “The UK’s marginal growth is an encouraging early sign, particularly as the revised DCTS framework, effective 1 January 2026, is expected to improve sourcing flexibility and support Sri Lanka’s competitiveness in that market.”
The introduction of a uniform 10 percent temporary US tariff is also seen as a relatively positive development for Sri Lankan exporters. This change reduces the burden of previously higher country-specific rates and enhances short-term pricing certainty, as highlighted by JAAF.
JAAF remarked, “While the overall decline in January is moderate, it reflects continued volatility in global demand.”
The industry remains committed to enhancing resilience through market diversification, product innovation, and operational efficiency. Efforts to collaborate closely with stakeholders aim to maintain Sri Lanka’s status as a trusted apparel sourcing hub.
