Apparel and textiles: Exports to US, EU fall in Jan., UK holds steady

According to data released by the Joint Apparel Association Forum (JAAF), Sri Lanka’s total apparel exports in January reached $ 425.44 million, with shipments to the US having declined by 2.73% in year-on-year (YoY) terms down to $ 165.11 million in January.

Exports destined for the EU, excluding the UK, also registered a decrease of 1.93%, totalling $ 126.99 million in January. This is also down from $ 141 million registered in December 2025.

The UK market continued to be stable for Sri Lankan apparel, with a slight increase of 0.23% to $ 61.71 million in January. This follows a 12.95% rise to $ 55.12 million seen in December 2025.

Exports to other destinations experienced a decrease of 6.07% during January, accounting for $ 71.63 million.

JAAF stated that the January results indicate uneven global demand and underscore the need to enhance “diversification and competitiveness”.

The UK’s marginal growth at the start of the year coincides with trade reforms under the revised Developing Countries Trading Scheme (DCTS), which took effect on 1 January.

These changes have eased rules of origin requirements, now allowing Sri Lankan manufacturers to export clothing tariff-free into the UK even when sourcing raw materials globally rather than just from selected Asian countries.

In addition, the introduction of a uniform 10% temporary US tariff has replaced earlier higher country-specific rates and provides greater short-term pricing certainty for Sri Lankan exporters.

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.”

“Sri Lanka apparel exports to US, EU fall in January, UK holds steady” was originally created and published by Just Style, a GlobalData owned brand.

Source - The Morning