Curtis Wool Direct

Sri Lanka’s clothing exports set for further growth

Buy and sell wool 24 hours a day, 7 days a week from anywhere in the world. Click here.

Sri Lanka’s clothing exports are poised for further growth, according to a report in the latest issue of Textile Outlook International from the global business information company Textiles Intelligence.


The Sri Lankan clothing industry has built up a good reputation for quality and delivery among buyers in the markets of developed countries and has the potential to capitalise further on its inherent strengths.


Also, the industry has been a pioneer in adopting environmentally friendly manufacturing and waste management methods in order to improve its market image — at a time when the clothing industries in other countries have struggled to maintain theirs.


Sri Lanka’s clothing exports have done well in recent years. Between 2009 and 2014 they grew by over 51% — despite unfavourable conditions in foreign markets since the global recession in 2009 and the industry’s loss of GSP+ concessions in the EU import market in mid-2010. These concessions provided the Sri Lankan clothing industry with duty-free access to the EU market but they were withdrawn as a result of concerns over Sri Lanka’s record on human rights.


However, the industry has benefited from a government which has been highly supportive by creating an environment conducive to business in the country and providing tax incentives to encourage foreign direct investment (FDI).


In particular, the Sri Lankan government has introduced incentives to encourage the establishment of manufacturing facilities in the more rural and less developed parts of the country — including the previously war-torn eastern and northern regions — where there are plentiful supplies of labour willing to work for lower wages than in Colombo and its surroundings.


Moreover, Sri Lanka is entering a new phase of political and economic harmony following the election in January 2015 of a new president and the appointment of a new prime minister — whose policies were reaffirmed in a parliamentary election in August 2015.


The new prime minister has promised to implement better governance, a market-friendly economic policy and a more pro-Western stance. As a result, there will be a renewed emphasis on encouraging foreign companies to establish export oriented manufacturing operations in the country and this could be encouraged by offering even stronger investment incentives.


At the same time, the clothing industry hopes to secure higher exports to the EU through the restoration of GSP+ concessions. Such restoration would provide exports from Sri Lanka with tariff-free access to EU markets and could lead to a sizeable increase in clothing shipments.


On the negative side, if GSP+ status in the EU market is not restored, Sri Lanka’s clothing producers would remain at a long-term disadvantage in the face of competitors in Pakistan who do benefit from duty-free access to the EU under GSP+, or those in Bangladesh and Cambodia who benefit from duty-free access to the EU under the GSP Everything But Arms (EBA) scheme.


There is also a possibility that Sri Lanka’s competitive position in the crucial US market will be threatened by the terms of the Trans-Pacific Partnership (TPP), which is expected to favour Vietnam and Malaysia.


Source: Textile Intelligence

Share This Article

Comments are closed.

New Zealand
South Africa
Wool Promotion
Buy Alpaca from
Wool & Specialty Fibre
Tops & Yarn Dyeing
Wool & Top Treatment 
Buy Yarn From
Textile Machinery
Wool Magazines

Interested in reaching buyers in China? Advertise in wool2yarn China magazine and reach major importers of wool and speciality fibre, topmakers, spinners, weavers and textile companies in China, in their own language, breaking down the language barrier. This publication is circulated to 5000 major textile companies in China, Hong Kong and Taiwan and is a buyer’s guide and information source for the year ahead. See More.

Reach buyers in 58 countries – advertise in wool2yarn global magazine. Published once each year (September) it is circulated to over 5000 textile companies. Readership includes importers of wool and speciality fibre, topmakers, spinners and weavers, manufacturers of yarn, knitwear, carpet, and blankets, producers and importers of fabrics, bedding products, garment manufacturers, and brands and retail chains. See more.

Wool Reports
Buy Wool, Wool Tops, Yarn Online
Wool Testing
Wool Logistics
Wool Grease
Wool Products Online
Second Hand Textile Machinery