Sri Lanka’s garment industry has again shown its resilience and competitiveness in the international markets under adverse external conditions even without any preferential treatment or concessions. Export figures for 2010 released recently show a marginal growth in export to the main EU and US markets.
Analysts say that export growth to the EU in a situation where GSP+ tax concessions have been abolished is an encouragement and the industry can go forward on its own. The total value of garment exports in 2010 was $ 3359.3 million, a 6.4 percent growth compared to $3157.6 million in 2009. Exports to the EU market was $1702.2 million, a 3.4 percent increase compared to $ 1646.8 million in 2009. Exports to the US market has also increased by 5.8 percent to $1372.8 million against $1297.5 million in 2009.
The industry underwent negative impacts of the global financial crisis in the first and second quarters of the year. The industry has shown a negative growth in the first and second quarters and the demand increased in the second half of the year with the recovery in main markets.
A slight recovery was seen since June and July of the year and it picked up in October and caught up by the end of the year. However, there was a 34.4 percent increase in total exports during December 2010 compared to December 2009. During the month exports to the US and EU markets increased by 35 and 32.8 percent.