Sri Lankan apparel industry witnesses 9.8 percent growth rate 1Q of 2015

Sri Lankan apparel industry has witnessed 9.8 percent growth rate as strong demand was sustained from the EU and the USA in the first quarter of 2015. The apparel export to the US and EU increased by 8.8 percent and 10.9 percent respectively.

Over the year 2014-15 the total apparel exports from Sri Lanka accounted for 89 percent to the US and EU.

Textured Jersey Lanka PLC (TJL), Sri Lankan leading textile manufacturer said that the company is also directly impacted by demand from domestic apparel manufacturers and foreign retailers.

Knit garment exports from Sri Lanka increased by 11.7% while exports of woven apparel increased by 7.1% in 2014 calendar year. The knit manufacturing segment is showing growth potential, with many countries looking at Sri Lanka as a potential manufacture for this range of garments. The industry growth and TJL’s own customer portfolio being predominantly US and European based, strategically positions TJL to leverage its capabilities to ensure a strong growth trajectory.

A significant development during the year was the commencement of negotiations to regain the Generalised Scheme of Preferences Plus (GSP+) facility for Sri Lanka. If re-instated, the GSP+ facility will provide concessionary access for Sri Lankan apparel, into the Eu and will enhance the growth potential of the entire apparel industry.

The GSP+ would allow duty free exports of Sri Lanka. Given the highly competitive global apparel industry, a price differential such as the offering in GSP+ will significantly boost European demand for Sri Lankan apparel. Predictably, such an advantage will indirectly increase global demand for Sri Lankan textile products.

The Sri Lankan apparel will be more competitive in the European markets as the concession will not only make sourcing fabric within Sri Lanka more attractive but also reduce cost of imports from Sri Lanka into EU countries.