Sri Lanka's apparel exports rebounded in 2024, reaching $4.7 billion, marking a 5 per cent year-on-year increase. However, this figure falls short of the $5.3 billion achieved in 2019, indicating a 10.3 per cent shortfall.

Key markets exhibited mixed performance. While exports to the US, Sri Lanka's largest market, grew by 5.23 per cent, they remain 19.4 per cent below 2019 levels. Exports to the UK demonstrated robust growth of 7.65 per cent, nearing 2019 levels, driven by sustained demand for ethically and sustainably manufactured garments. The EU market saw modest growth of 0.81 per cent.

The Joint Apparel Association Forum (JAAF) emphasizes the critical role of localized fabric production in enhancing the industry's competitiveness. The Eravur Textile Zone, a dedicated area for local fabric manufacturing, aims to save foreign exchange, reduce production lead times, and improve the value proposition of Sri Lankan exports by meeting global demands for traceability and sustainability.

"The Eravur Textile Zone is more than just an initiative; it's a lifeline for the industry," said Yohan Lawrence, Secretary-General of JAAF. "Localizing fabric production is crucial to increasing competitiveness and meeting the demands of global markets."

Challenges remain, including downward pressure on pricing and the need for continued collaboration between the government and the industry. Key policy actions include enhanced market access, improving infrastructure, ensuring transparent and predictable electricity pricing, and addressing operational bottlenecks.

Despite these challenges, Sri Lanka's apparel sector has shown resilience. By focusing on strategic investments and reforms, the industry aims to reclaim pre-pandemic levels and achieve export earnings exceeding USD 6 billion, solidifying its position as a global leader in quality and ethical manufacturing.