Sri Lanka's textile and apparel industry achieved a significant milestone in 2025, with total exports surpassing the $5 billion mark for the full year. The sector demonstrated resilience and growth momentum, particularly in December 2025, when apparel and made-up textile articles exports reached $447.21 million, representing a robust 5.43% increase compared to $424.18 million recorded in December 2024.
December Performance Drives Year-End Success
The December 2025 export figures encompass HS Chapters 61, 62, and 63, which cover knitted and crocheted apparel, non-knitted apparel, and other made-up textile articles respectively. This growth trajectory reflects the industry's ability to maintain competitiveness in global markets despite ongoing economic challenges and supply chain disruptions that have affected many manufacturing sectors worldwide.
Industry export statistics reveal that the growth was broad-based across Sri Lanka's three primary destination markets, indicating strong demand fundamentals and the country's continued relevance as a preferred sourcing destination for international fashion brands and retailers.
United States Market Shows Strong Momentum
The United States, Sri Lanka's largest apparel export market, demonstrated particularly strong performance with exports increasing 6.49% year-on-year to $178.29 million in December 2025. This growth rate exceeded the overall sector average, highlighting the strengthening trade relationship between Sri Lanka and the US market.
The US market's robust performance can be attributed to several factors, including Sri Lanka's reputation for high-quality garment manufacturing, ethical production practices, and the ability to meet stringent quality standards demanded by American retailers. The country's textile industry has increasingly focused on value-added products and sustainable manufacturing processes, which align well with evolving consumer preferences in the US market.
Strategic Positioning in Global Supply Chains
Sri Lanka's apparel industry has strategically positioned itself as a reliable partner for international brands seeking alternatives to traditional manufacturing hubs. The country's skilled workforce, established infrastructure, and commitment to compliance with international labor and environmental standards have contributed to its competitive advantage.
The achievement of the $5 billion export milestone represents years of strategic planning and investment in modernizing production capabilities. Sri Lankan manufacturers have embraced technology adoption, automation, and digitalization to enhance productivity and maintain cost competitiveness while improving product quality.
Economic Impact and Employment Generation
The apparel sector's strong performance has significant implications for Sri Lanka's broader economic recovery efforts. As one of the country's largest export industries, textiles and apparel contribute substantially to foreign exchange earnings, which are crucial for maintaining economic stability and supporting import requirements.
The industry employs hundreds of thousands of workers, particularly women, making it a vital source of employment and income generation. The sector's growth trajectory supports job creation and skills development, contributing to poverty reduction and economic empowerment across communities involved in textile manufacturing.
Sustainability and Innovation Focus
Sri Lankan apparel manufacturers have increasingly emphasized sustainable production practices and innovation to differentiate their offerings in competitive global markets. Many companies have invested in eco-friendly manufacturing processes, renewable energy adoption, and circular economy principles to meet growing demand for sustainable fashion products.
This focus on sustainability has resonated particularly well with European and North American buyers, who are increasingly prioritizing environmental and social responsibility in their sourcing decisions. Sri Lanka's commitment to sustainable manufacturing practices has helped secure long-term partnerships with major international brands.
Future Growth Prospects
The strong December performance and achievement of the $5 billion milestone provide a positive foundation for continued growth in 2026 and beyond. Industry stakeholders are optimistic about maintaining this momentum, supported by ongoing investments in technology, skills development, and market diversification efforts.
The government's support for the textile industry through policy initiatives, infrastructure development, and trade facilitation measures has created an enabling environment for sustained growth. Export promotion activities and participation in international trade shows continue to help Sri Lankan manufacturers expand their global market reach.
Market Diversification Strategies
While traditional markets like the United States remain crucial, Sri Lankan exporters are actively pursuing diversification strategies to reduce dependency on any single market. Emerging markets in Asia, Africa, and Latin America present new opportunities for growth, particularly for mid-market and value-conscious product segments.
The industry's ability to adapt to changing market dynamics and consumer preferences will be critical for maintaining its competitive position. Continued investment in research and development, design capabilities, and market intelligence will support long-term sustainability and growth in the global apparel trade.