Sri Lanka Apparel exports rise nearly 8% in May as US demand rebounds
Sri Lanka’s apparel and textile exports recorded their strongest monthly performance of the year in May 2026, rising 7.96 percent year-on-year to US$394.14 million, driven largely by a sharp recovery in demand from the United States.
According to industry data, exports to the US climbed 15.36 percent to US$149.96 million during the month, underscoring renewed buyer confidence in Sri Lankan apparel despite mounting trade uncertainties. Shipments to markets outside the industry’s three traditional destinations also posted robust growth, increasing 14.61 percent to US$70.67 million. Exports to the United Kingdom edged up 0.87 percent, while shipments to the European Union slipped marginally by 0.3 percent to US$121.35 million.
The strong US performance comes at a crucial juncture for the industry as Sri Lanka engages with the Office of the United States Trade Representative over a Section 301 investigation concerning the prohibition of imports made with forced labour. A report issued in June placed Sri Lanka among 46 countries facing a proposed additional tariff of 12.5 percent.
Several competing apparel exporters, including Bangladesh, Cambodia, Pakistan and Indonesia, have been assigned a lower 10 percent tariff after taking measures to address concerns over goods produced with forced labour. A public hearing on the proposal is scheduled for July 7 in Washington, making the coming weeks critical for Sri Lanka’s efforts to secure more favourable treatment.
The Joint Apparel Association Forum (JAAF), which has consistently called for tariff parity with competing nations, said May’s performance reflected continued trust among international buyers in Sri Lanka’s manufacturing sector.
“May’s numbers are genuinely encouraging, and they reflect the trust our buyers continue to place in Sri Lankan manufacturing even amid a challenging trade environment,” JAAF said, adding that securing a competitive tariff outcome would be vital for sustaining growth.
Despite May’s rebound, cumulative apparel and textile exports for January-May 2026 stood at US$1.93 billion, down 4.68 percent from a year earlier. However, the latest figures indicate the industry could regain momentum in the second half of the year if tariff concerns are resolved favourably and buyer confidence continues to strengthen. (DSA)
Source: Daily News
