In January 2026, Sri Lanka’s apparel exports experienced a year-on-year decrease of 2.66%, dropping to US$ 425.44 million from US$ 437.07 million in January 2025. This decline underscores ongoing challenges across major export markets.

Exports to the United States saw a reduction of 2.73%, amounting to US$ 165.11 million, while exports to the European Union (excluding the UK) decreased by 1.93% to US$ 126.99 million. In contrast, the UK market showed stability with a slight increase of 0.23%, reaching US$ 61.71 million. Exports to other markets fell by 6.07%, totaling US$ 71.63 million.

The performance in January highlights the uneven demand on a global scale and emphasizes the necessity for enhanced diversification and competitiveness. The minor growth observed in the UK is a positive indicator, especially considering the revised Developing Countries Trading Scheme (DCTS) framework, which came into effect on January 1, 2026. This framework is anticipated to enhance sourcing flexibility and bolster Sri Lanka’s competitive edge in the UK market.

Furthermore, the introduction of a uniform 10% temporary tariff by the US is a favorable development for Sri Lankan exporters. This change alleviates the pressure of previous higher country-specific rates and offers improved short-term pricing stability.

Regarding January’s performance, the Joint Apparel Association Forum (JAAF) commented, “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.”