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The country\u2019s apex industry organisation the Joint Apparel Association Forum (JAAF) said in a statement, \u201cThe exports to the US, rose 15.36 per cent year-on-year to $149.96 million during the month. US is the largest apparel market for the island nation. Shipments to markets outside the industry’s three traditional destinations climbed 14.61 per cent to $70.67 million, while exports to the UK edged up 0.87 per cent. Exports to the European Union (EU), however, slipped 0.3 per cent to $121.35 million.<\/p>\n
Sri Lanka’s apparel and textile exports rose 7.96 per cent year on year to $394.14 million in May 2026, marking the sector’s strongest monthly performance this year.
\nGrowth was driven by a 15.36 per cent rise in exports to the US and higher shipments to non-traditional markets.
\nHowever, January-May exports were still down 4.68 per cent, with the industry awaiting a key US tariff decision.<\/p>\n
The strong US performance comes as Sri Lanka is seeking relief from a proposed tariff under the US Trade Representative’s (USTR) Section 301 investigation into imports allegedly linked to forced labour. A June report indicated that Sri Lanka could face an additional 12.5 per cent tariff under a proposed framework, compared with a 10 per cent rate for competing apparel exporters such as Bangladesh, Cambodia, Pakistan, and Indonesia, which have already implemented measures to address forced labour concerns.<\/p>\n
A public hearing on the proposal is scheduled for July 7 in Washington, with industry stakeholders having until June 22 to register their participation. The Joint Apparel Association Forum (JAAF) said the strong export performance in May showed that US buyers continue to source from Sri Lanka despite ongoing trade policy uncertainty, reflecting confidence in the country’s manufacturing quality, compliance standards, and supply reliability.<\/p>\n
“May’s numbers are genuinely encouraging, and they reflect the trust our buyers continue to place in Sri Lankan manufacturing even amid a challenging trade environment. Our focus now is on securing a fair and competitive tariff outcome in Washington, so that this momentum can translate into long-term growth rather than a short-term gain. We remain confident that with the right policy support, the second half of 2026 can be considerably stronger for the sector,” JAAF said in a statement.<\/p>\n
Despite the rebound in May, Sri Lanka’s apparel and textile exports remained under pressure during the first five months of 2026. Cumulative exports for January-May totalled $1.927 billion, down 4.68 per cent year on year, with shipments to the US, European Union and United Kingdom all recording declines compared with the same period last year.<\/p>\n
JAAF noted that a favourable outcome in the ongoing US tariff review could help convert the recent improvement into sustained export growth. The association has consistently urged the US authorities to align Sri Lanka’s tariff treatment with that of competing apparel-exporting countries.<\/p>\n
As the USTR hearing process enters a crucial stage, the industry’s performance in the coming months will depend not only on the recovery of demand in key export markets but also on the final tariff decision, which could have a significant impact on Sri Lanka’s competitiveness in its largest export destination, the US.<\/p>\n
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Fibre2Fashion News Desk (KUL)<\/p>\n
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