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Apparel exports continue downward spiral; face risk of losing market share
- July apparel export earnings decline to US$ 401mn, down 23%
- For January-July period, apparel export earnings down 19% to US$ 2.68bn
By Shabiya Ali Ahlam
Sri Lanka’s apparel sector continues undergo distress and has now begun to lose its market share to competing nations, said the apex industry body, Joint Apparel Association Forum (JAAF).
As apparel exports continue their downward spiral, the numbers show that the situation is not in favourable to the island nation’s once highly resilient sector.
“Whilst this is a global trend, it’s important to note that particularly in markets like the UK and the EU Sri Lanka is losing out market share to countries benefiting from better market access arrangements,” JAAF Secretary General Yohan Lawrence told Mirror Business.
He asserted that for Sri Lanka to regain this lost market share, it must get better access to these markets.
“The limitations on fabric under the EUs GSP plus scheme as also the UK DCTS scheme are two such areas. Similarly the quota of 8 million pieces duty free to India needs to be re-examined. Right now LDC countries are gaining complete duty free access to markets like Canada and Australia. We appreciate that Sri Lanka is looking to join RCEP but timing is key,” added Lawrence.
Sri Lanka’s apparel exports hit a new low in July with export earnings falling to US$ 401 million, a decline of 23.17 percent Year-on-Year (YoY).
A cursory analysis of export revenue of the apparel sector over the last five years showed that the previous low was recorded in 2021, where apparel exports totalled US$ 425. 75 million.
Exports to all source markets showed a decline, with the sharpest contraction was seen in exports to the UK. Apparel exports to that market contracted by 31.32 percent to US$ 51.50 million.
Similarly, exports to the US, EU, and other markets dipped by 18.70 percent to US$ 173.70 million, 24.07 percent to US$ 117.16 million, and by 25.75 percent to US$ 58.82 million.
cumulative analysis too showed a bleak picture, as exports to all markets for the seven months of the year ending July has contracted.
For the January- July 2023 period, earnings from apparel exports totalled US$ 2.68 billion, down 18.94 percent YoY.
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