This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 10/10/2018
Sri Lanka’s apparel export industry is one of the most significant contributors to the economy.  The industry has recorded substantial growth levels over the past four decades and is currently the country’s leading export, accounting for approximately 40 percent of total exports, and providing about 33 percent of the manufacturing employment in the country.  Earnings from apparel exports in 2017 was $ 4.8 billion, a 3 percent increase compared to the previous year.

Sri Lanka has built its competitive edge on value-addition rather than cheap production cost, with greater emphasis on product quality and its ability to manufacture niche products.  Despite increased international competition, exporters seem to be faring quite well.  Apparel exports to EU increased following the restoration of the EU GSP+ facility in 2017.

Leading Sub-Sectors
Establishing textile-manufacturing facilities
Providing technological equipment
Warehousing hub for U.S. yarn

The apparel industry is a key sector that needs continuous upgrading and acquisition of new technology and equipment.

There are prospects to supply grey fabric, denim, polyester yarn, and specialized fabric used for lingerie and sportswear. 

U.S. exporters could evaluate Sri Lanka as a warehousing hub for U.S. yarn and fabric bound for other markets in the region.  Many Sri Lankan apparel companies manufacture for top U.S. apparel brands. 

Attractive incentives are available for U.S. manufacturers to establish textile-manufacturing facilities.  U.S. suppliers who want to compete in this market need to be flexible in negotiating payment terms.

Web Resources
MAS Holdings 
Brandix Lanka 

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Sri Lanka Textiles and Apparel Trade Development and Promotion