Sri Lankan apparel exports post modest growth despite US and UK declines

Core Insights - Apparel exports from Sri Lanka rose by 1.58% in September 2024, reaching just over $403 million, despite declines in shipments to the US and UK [1] - Total apparel exports for the first nine months of 2025 amounted to $3.79 billion, reflecting a 6.83% increase compared to $3.55 billion in the same period last year [2] - The Sri Lankan apparel sector demonstrated adaptability through efficiency, innovation, and market diversification, even amid global challenges [3] Export Trends - Exports to the US decreased by 4.71%, while exports to the UK fell by 15.06%, but these declines were offset by a 10.75% increase in exports to the EU and a 19.49% rise to other markets [1] - US-bound exports grew by 1.73% to $1.46 billion, and exports to the EU increased by 14.24% to $1.17 billion during the first nine months of 2025 [2] Market Dynamics - The UK market experienced a modest growth of 2.31%, totaling $533.73 million, alongside a 10.45% expansion in other markets, resulting in $630.29 million [3] - The World Bank warned that a 20% tariff imposed on Sri Lankan freight could reduce garment exports to the US by up to 12%, potentially impacting employment, especially for low-skilled workers and women [4] Labor Concerns - Approximately 500 employees from a garment factory protested against a perceived decrease in employee rights following a recent 10% reduction in tariffs on Sri Lankan exports to the US [5]