Sri Lanka apparel exports ease in January while UK market remains stable

Sri Lanka’s apparel exports declined by 2.66% year-on-year in January 2026, falling to US$ 425.44 million from US$ 437.07 million in January 2025, reflecting continued pressure across key export markets.

Exports to the US fell by 2.73% to US$ 165.11 million, while exports to the EU (excluding the UK) declined by 1.93% to US$ 126.99 million. The UK remained stable, recording a 0.23% increase to US$ 61.71 million, while exports to other markets fell by 6.07% to US$ 71.63 million.

The January performance highlights uneven global demand and reinforces the need to strengthen diversification and competitiveness. The UK’s marginal growth is an encouraging early sign, particularly as the revised DCTS framework, effective 1 January 2026, is expected to improve sourcing flexibility and support Sri Lanka’s competitiveness in that market.

The move to a uniform 10% temporary US tariff is also a relatively positive development for Sri Lankan exporters, as it reduces the burden of earlier higher country-specific rates and improves short-term pricing certainty.

Commenting on the January performance, JAAF said, “While the overall decline in January is moderate, it reflects continued volatility in global demand. The industry remains focused on strengthening resilience through market diversification, product innovation, and operational efficiency, while working closely with stakeholders to protect Sri Lanka’s position as a trusted apparel sourcing hub.”