Sri Lankan garment & textile exports decline in July

14 Sep '12

2 min read

Sri Lanka’s earnings from garment and textile exports declined by 14.4 percent year-on-year to US$ 328.2 million in July 2012, according to the figures released by the Central Bank.

In July 2011, Sri Lanka’s textile and garment exports stood at US$ 383.3 million.

The dip in Sri Lankan apparel and textile exports is mainly due to fall in demand from the recession hit EU countries.

However, textile and clothing imports grew 7.1 percent year-on-year to US$ 195.6 million during the month, compared to imports worth US$ 182.6 million during the corresponding month last year.

In July 2012, Sri Lanka’s total exports fetched US$ 794.4 million, while the country spent US$ 1.329 billion for importing goods, thus creating a negative balance of trade of US$ 534.6 million.

Last year, Sri Lankan garment and textile sector had exported goods worth US$ 4 billion and the country has set a target of achieving US$ 5 billion in apparel and textile exports by 2016.

Sri Lankan garment sector faces stiff competition from other SAARC countries like Bangladesh, India and Pakistan and it will be a challenge for the sector to maintain US$ 4 billion level in exports in the midst of the ongoing debt crisis in eurozone and quickly rising exchange rates, according to experts.

Hence, apparel firms in Sri Lanka are currently exploring possibility of exporting to non-traditional markets so as to sustain the present growth level.

Fibre2fashion News Desk - India