For the first nine months of 2025, the industry maintained steady momentum. Cumulative apparel exports from January through September reached $3.79 billion, an increase of 6.83% compared with $3.55 billion in the corresponding period of 2024.
Within that nine-month window, the United States remained the largest single market, accounting for $1.46 billion in sales, up 1.73% year on year. The European Union followed with $1.17 billion, a rise of 14.24%. Exports to the United Kingdom edged up 2.31% to $533.73 million. Shipments to other regions—including Canada, Australia, and selected Asian destinations—grew 10.45%, reaching $630.29 million.
Industry response and outlook
JAAF credited the sector’s resilience to operational efficiency, product innovation, and deliberate diversification of export markets. The association said it would continue to work with government agencies and private stakeholders to align policies and support small and medium-sized manufacturers.
External headwinds, however, remain in focus. The World Bank recently cautioned that a baseline tariff of 20% on all Sri Lankan freight, introduced by former U.S. President Donald Trump, could trim the country’s garment exports to the United States by as much as 12%. Separately, the Business & Human Rights Resource Centre warned that any significant reduction in U.S. orders would weigh heavily on employment, particularly among low-skilled employees and women who make up a large share of the apparel workforce.
Labor concerns surfaced locally last month when roughly 500 employees at a factory in the Katunayake Free Trade Zone staged a protest. Participants claimed that a recent 10% cut in tariffs on Sri Lankan textile goods entering the United States had coincided with what they described as an erosion of workplace rights. The demonstration underscored the sensitivity of the sector to trade policy shifts in key destination markets.
While JAAF did not directly address the protest, the organization reiterated its commitment to maintaining “market competitiveness” through continual engagement with policymakers. The body stated that ensuring stable operating conditions for both large exporters and smaller suppliers remains a high priority.
Long-term competitiveness
Industry representatives also highlighted ongoing efforts to upgrade manufacturing facilities, adopt sustainable production practices, and pursue technological improvements. These initiatives, they contend, will help Sri Lankan producers differentiate themselves in a global marketplace characterized by fluctuating consumer demand and intensifying cost pressures.
Analysts observing the sector point out that the mixed monthly results in 2025 reflect broader volatility in global apparel trade. While economic recovery in parts of Europe has boosted Sri Lankan shipments to the EU, uneven retail activity in the United States and currency movements in the United Kingdom have dampened orders from those destinations.
Whether the country can sustain the current pace of growth will depend in part on trade negotiations, currency stability, and the purchasing patterns of major international retailers. For now, the incremental increase in cumulative exports through September suggests that the industry’s diversification strategy is helping to cushion the impact of market-specific downturns.
Crédito da imagem: Leon Concept/Shutterstock.com
