Sri Lanka’s apparel exports returned to growth in September 2026, an encouraging sign for the sector. Although the nine-month total is still behind last year, the Joint Apparel Association Forum (JAAF) sees the latest result as a positive step.
Apparel exports for the month came to $ 416.99 million, up 3.47% from $ 403.01 million in September 2025. The United States and the European Union, the sector’s two largest markets, led the gain. Exports to the US grew 7.17% to $ 172.03 million, and exports to the EU (excluding the UK) grew 6.5% to $ 132.46 million.
Performance across markets was mixed. Exports to the UK fell 5.92% to $ 47.33 million, and exports to other destinations slipped 3.89% to $ 65.17 million.
The cumulative figures tell a more sobering story. Between January and September 2026, apparel exports totalled $ 3,588.46 million, a decline of 5.52% from $ 3,798.25 million in the same period last year. That is a shortfall of roughly $ 210 million. One strong month, welcome as it is, does not close a gap of that size.
The decline runs across all major markets over the nine months. The UK saw the steepest fall at 10.85%, followed by the EU at 5.44% and other markets at 5.43%. The US fell 3.69%, the smallest drop among the major markets.
Changing trade flows of major trading countries, are also shaping the global picture. Chinese apparel shipments to the United States were around 34% lower in the first seven months of 2026, according to US import data. Industry representatives in competing countries note that China and India have been turning more of their attention to Europe following higher US tariffs, which has made the market more price-competitive.
China’s share of EU apparel imports edged up from 26.9% to 28.6% between January and April 2026. For Sri Lankan manufacturers, this points to a busier European market at a time when overall demand remains soft, and it underlines the importance of competitiveness, reliability and diversification.
JAAF Secretary General Yohan Lawrence said: ‘September’s growth in the US and EU is encouraging, and it shows our manufacturers can compete when demand is there. We’re still more than five percent behind where we were this time last year. What the industry needs now is steady, competitively priced energy and a supportive policy environment, so that this momentum lasts beyond a single month’.
JAAF sees September as an encouraging sign, particularly with the US and EU both growing, but not yet a turnaround. The industry will be watching closely whether this momentum carries through the remaining months of the year, and whether markets such as the UK can recover.