Sri Lanka export slump rattles January trade figures
The Export Development Board has reported a decline in export revenue from garments and textiles in January this year compared with the same month of the previous year, raising concerns about the resilience of one of Sri Lanka’s most important export sectors. According to the EDB, earnings from garments and textiles fell to US$447.25 million in January, down from US$460.22 million recorded in January last year, representing a decrease of 2.82 percent year on year.
The contraction was not limited to apparel. Export earnings from spices and essential oils also declined in January, posting a reduction of 4.57 percent compared with the corresponding period a year earlier. The diamonds, gems and jewellery sector recorded an even sharper downturn, with export revenue falling by 10.96 percent, highlighting broader pressures across multiple high-value export categories.
Country-level data further reflected the slowdown. Merchandise exports to the United States, one of Sri Lanka’s largest export destinations, slipped by 0.90 percent in January. Exports to the US stood at US$260 million in January last year but declined to nearly US$258 million this year. Similar decreases were reported in exports to the United Arab Emirates, France and Canada, underscoring a weakening performance across several major markets.
However, the interpretation of the data became contentious at a press conference held at the Government Information Department. Responding to a journalist’s question on the apparent decline in garment and textile export earnings, Mangala Wijesinghe, Chairman and Chief Executive Officer of the EDB, stated that there had been no decrease in garment exports, suggesting that underlying factors or data classifications may explain the reported figures rather than an actual drop in industry performance.
