Sri Lanka’s garment exports have fallen sharply in 2010

The Sri Lanka Garment Buying Officers Association (SLGBOA) recently warned that the loss of export tariff preferences for Sri Lankan garments in the European Union market, combined with a drop in exports to the United States, is expected to cause a significant decline in the country’s clothing exports in 2010 compared to 2009. According to the association, the EU and the U.S. together account for over 94.5% of Sri Lanka's total garment exports. In the first eight months of 2010, garment exports to the U.S. fell by 4.6%, reaching $833 million. Meanwhile, exports to the EU are projected to decrease by approximately 10%. This decline comes as a major blow to the garment industry, which plays a crucial role in the country’s economy. The loss of preferential access to key markets has raised concerns among industry leaders about the future stability of the sector. With global demand fluctuating and trade policies changing rapidly, Sri Lanka's textile exporters are now facing an uncertain outlook. The SLGBOA is urging the government to take immediate action to secure new trade agreements and support the domestic industry through policy reforms and financial assistance.