MONETABRIEF – Sri Lanka exports to the Europe are facing more competition in Europe after China and India focused on the region facing higher tariffs in the United States, the Joint Apparel Association Forum, representing apparel firms said.
In September exports to EU grew 6.5 percent to 132.4 million US dollars and exports to the US grew 7.17 percent to 172 million dollars.
But exports to the UK fell 5.92 percent to 47.3 million US dollars and exports to other destinations fell 3.89 percent to 65.1 million dollars.
Between January to September 2026, apparel exports were 3,588 million dollars, down 5.5 percent or 210 million dollars from last year.
The steepest fall was in the UK at 10.85 percent, EU 5.44 percent and other markets 5.43 percent. The US fell only 3.69 percent.
Chinese apparel shipments to the United States were around 34 percent lower in the first seven months of 2026, according to US import data, the JAAF said.
"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," JAAF said.
China’s share of EU apparel imports had increased to 28.6 percent from 26.9 percent 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."
Europe has been badly hit by inflation triggered by macro-economists running abundant reserve regime though the European Central Bank, triggering street riots like in developing countries with inflation biased central banks.
While the September pick up was welcome news, the JAAF said 2026 broader trend was impacting the industry. (Colombo/Cct28/2026)