23 June 2023 06:04 am Views - 805
By Shabiya Ali Ahlam
However, when compared with April 2023, export earnings in May expanded by 20.4 percent.
Since September 2022, apparel export earnings have been on a downward trend on an year-on-year basis.
According to the data compiled by industry body Joint Apparel Association Forum (JAAF), exports to all major markets fell during May amid slowdown in orders.
Apparel exports to the US fell 23.18 percent YoY to US$ 147.30 million while exports to the EU, excluding UK, fell 4.87 percent YoY to US$ 123.03 million. Exports to UK declined 18.53 percent YoY to US$ 50.18 million and to other markets by 1.73 percent YoY to US$ 62.66 million.
The cumulative export earnings for the first five months of 2023 declined 16.48 percent YoY to US$ 1.88 billion.
Total exports to the US in the first five months were US$ 746.45 million, down 22.77 percent YoY. Exports to the EU fell 14.35 percent YoY to US$ 557.15 million and to the UK by 15.12 percent YoY to US$ 263.79 million.
Cumulative exports to other markets declined 3.43 percent YoY to US$ 316.74 million.
Amid rising inflation and interest rates, consumer demand in Sri Lanka’s key apparel export markets has faltered. In addition, Sri Lanka has become expensive for apparel sourcing due to higher production cost stemming from sharp rise in electricity tariffs and other input costs.
“The decline in exports unfortunately continues s market demand conditions remain weak and manufacturers now have to take orders at low or negative margins just to keep factories in work. Low cost countries like Bangladesh continue to do better than Sri Lanka in this respect,” JAAF Secretary General Yohan Lawrence told Mirror Business.
Apparel is Sri Lanka’s largest industrial export had earned US$5.95 billion in foreign exchange for the dollar-hungry nation in 2022.
JAAF expects a reduction of about US$ 1 billion from apparel exports compared to 2022.