Sri Lanka’s apparel industry marked a significant milestone in March 2025, posting record-high monthly and quarterly export figures — but looming US tariffs are casting a shadow over future prospects.
According to provisional data released by the Joint Apparel Associations Forum (JAAF), apparel exports in March surged by 11.65% year-on-year to $467 million, the highest monthly figure recorded in recent years. First-quarter exports also saw robust growth, rising by 11.7% to $1.3 billion.
Exports to the United States, Sri Lanka’s largest apparel market, rose sharply by 16.5% to $172 million in March, signaling strong demand. Shipments to the European Union and the United Kingdom were also buoyant, climbing 14.5% to $142 million and 16.7% to $77 million, respectively. However, exports to other markets declined by 5.8% to $76 million.
For the full first quarter, exports to the US grew by 11% to $494.6 million, while the EU posted a 16% rise to $392 million, and the UK saw a 6% increase to $193.5 million. Other markets collectively recorded a 12% increase, reaching $231.6 million.
March’s performance marked the highest monthly export figure in the past six years, surpassing the previous record of $435.3 million set in 2021. Despite the strong showing, the first-quarter total still trails behind the $1.39 billion achieved in the same period in 2022.
While the sharp rebound in US-bound shipments in March was a positive sign — particularly after a 7.4% year-on-year dip in February — the industry is bracing for challenges ahead. The US recently imposed a 44% reciprocal tariff on Sri Lankan apparel, a move that, although temporarily mitigated by a 90-day relief window, raises concerns about medium-term order volumes, supply chain resilience, and the industry’s global competitiveness.
Sri Lanka Apparel Exporters Association (SLAEA) Chairperson Rajitha Jayasuriya noted that while mass order cancellations have not materialized, there has been a cautious response from some selective buyers, highlighting the sector’s growing unease.