Can garment and textile exports turn around the Sri Lankan economy crisis, which has registered a rise of 4.2 percent YoY to US $ 842.8 million?
Country’s latest trade data, both the textile and garment exports rose 5 percent YoY to US $ 481.5 million. For the nine-month cumulative period, textile and garment exports rose 17.6 percent YoY to US $ 4.5 billion.
Both the apparel and textile manufacturing industry has a significant and dynamic contribution to Sri Lanka’s economy. The industry has witnessed a persistent evolution in terms of fashion BPO services, research, development, and innovation. The industry secured $5.42 billion in export revenue in 2021. The industry provides jobs to 990,000 workers.
It is worth noting that the apparel and textile industry has contributed 44.24% of the 2021 national export revenue. The industry has set an $8 billion export revenue target by 2025while focusing on sustainability.
However, the ongoing political uncertainty has played a due role in contracting the industry growth, as the import data suggests that expenditure on textile and textile articles fell 11.7 percent YoY to US $ 231.5 million. The import expenditure on machinery and equipment in September 2022 fell 52.3 percent YoY to US $ 108.3 million, reflecting the slowdown in economic activities amid import restrictions and the foreign exchange crunch.
