Sri Lanka’s vital apparel manufacturing sector registered a slight contraction in the first two months of 2024, with total garment exports falling 5% year-on-year to $738 million. The decline underscores lingering headwinds in key overseas markets where economic uncertainty continues to weigh on global retail demand.
Key Highlights
- Total garment exports reached $738 million during January and February 2024, reflecting a 5% drop compared to the same period in 2023.
- Reduced demand from major Western retail hubs, driven by inventory adjustments and cautious consumer spending, contributed to the dip.
- Industry stakeholders remain focused on enhancing sustainability, supply chain resilience, and high-value product lines to bolster long-term competitiveness.
The apparel sector serves as one of Sri Lanka’s primary source of foreign exchange and a key driver of employment. While the figures for early 2024 point to ongoing market moderation, local manufacturers are actively pivoting toward ethical sourcing, sustainable production practices, and market diversification to navigate global trade disruptions.