Though Sri Lanka’s apparel exports returned to growth in September 2026, total year-to-date earnings in the first nine months remain behind earnings of last year, the Joint Apparel Association Forum (JAAF) said in a statement released recently.

During September, apparel exports for September reached $ 416.99 million, up by 3.47% from $ 403.01 million recorded in September 2025 – led by the United States and the European Union, the sector’s two largest markets. 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. 

Nonetheless, performance across markets was mixed, with the Forum noting that exports to the UK fell by 5.92% to $ 47.33 million, and exports to other destinations slipped 3.89% to $ 65.17 million. 

Between January and September 2026, apparel export earnings totalled $ 3,588.46 million – a decline of 5.52% from $ 3,798.25 million in the same period last year.  The decline runs across all major markets over the nine months, according to the Forum. 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.

“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 per cent 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 Secretary General Yohan Lawrence.  

While JAAF sees the month of September’s performance encouraging, particularly with the US and EU both growing, it noted that the industry may have to watch whether this momentum carries through the remaining months of the year, and whether markets such as the UK can recover.