Prospects for the textile and clothing industry in Sri Lanka, 2022
Description
Prospects for the textile and clothing industry in Sri Lanka, 2022
The textile and clothing industry in Sri Lanka is of major importance for the country's economy. Textile and clothing exports accounted for almost 43% of Sri Lanka's total exports in 2021, and the industry provided direct employment for about 350,000 people and indirect employment for about 1.0 mn people in support activities. However, these encouraging numbers mask marked differences between the textile industry and the clothing industry. In the textile industry there has been a sharp decline in the number of manufacturing facilities but in the clothing industry there has been significant expansion over the years, at least in terms of output. Success in clothing has been based on Sri Lanka's growing reputation in international markets as a reliable supplier of competitively priced high quality products, and the establishment of strong and enduring links with Western brands and retailers. Looking ahead, Sri Lanka faces growing competition in Western markets from other Asian suppliers. But there are opportunities for the clothing industry to secure further advances. In particular, Sri Lanka has already made gains in the EU import market following the reinstatement of its GSP+ status under the EU's General Scheme of Preferences (GSP). However, it is uncertain whether the country will continue to benefit from the arrangement from 2023 onwards when it comes up for renewal. More urgently, the industry is likely to be heavily impacted in 2022 from a deepening political and economic crisis in the country. Furthermore, a sharp depreciation of the rupee has increased the cost of purchasing imported textiles—on which the Sri Lankan apparel industry depends heavily. On the positive side, foreign direct investment in backward vertical integration looks set to increase sharply.
The textile and clothing industry in Sri Lanka is of major importance for the country's economy. Textile and clothing exports accounted for almost 43% of Sri Lanka's total exports in 2021, and the industry provided direct employment for about 350,000 people and indirect employment for about 1.0 mn people in support activities. However, these encouraging numbers mask marked differences between the textile industry and the clothing industry. In the textile industry there has been a sharp decline in the number of manufacturing facilities but in the clothing industry there has been significant expansion over the years, at least in terms of output. Success in clothing has been based on Sri Lanka's growing reputation in international markets as a reliable supplier of competitively priced high quality products, and the establishment of strong and enduring links with Western brands and retailers. Looking ahead, Sri Lanka faces growing competition in Western markets from other Asian suppliers. But there are opportunities for the clothing industry to secure further advances. In particular, Sri Lanka has already made gains in the EU import market following the reinstatement of its GSP+ status under the EU's General Scheme of Preferences (GSP). However, it is uncertain whether the country will continue to benefit from the arrangement from 2023 onwards when it comes up for renewal. More urgently, the industry is likely to be heavily impacted in 2022 from a deepening political and economic crisis in the country. Furthermore, a sharp depreciation of the rupee has increased the cost of purchasing imported textiles—on which the Sri Lankan apparel industry depends heavily. On the positive side, foreign direct investment in backward vertical integration looks set to increase sharply.
Table of Contents
49 Pages
- SUMMARY
- IMPORTANCE OF THE TEXTILE AND CLOTHING INDUSTRY TO THE ECONOMY OF SRI LANKA
- DEVELOPMENT OF THE TEXTILE AND CLOTHING INDUSTRY IN SRI LANKA
- SRI LANKA: GEOGRAPHICAL, POLITICAL AND ECONOMIC
- PROFILE Geographical profilePolitical profileEconomic profile
- SRI LANKA: INFRASTRUCTURE TransportationRoadsRailwaysAirports and airlinesPortsTelecommunications
- SRI LANKA: HUMAN RESOURCES
- SIZE AND STRUCTURE OF THE TEXTILE AND CLOTHING INDUSTRY IN SRI LANKA TextilesClothing
- SRI LANKA: TEXTILE AND CLOTHING PRODUCTION AND CONSUMPTION
- SRI LANKA: TEXTILE AND CLOTHING EXPORTS Textile and clothing exportsTextile exportsClothing exportsTextile and clothing exports by destinationClothing exports by destinationOutlook
- SRI LANKA: TEXTILE AND CLOTHING IMPORTS Textile and clothing importsTextile imports by categoryTextile and clothing imports by leading supplierTextile and clothing machinery imports
- SRI LANKA: FOREIGN DIRECT INVESTMENT (FDI) IN THE TEXTILE AND CLOTHING INDUSTRY
- TEXTILES AND CLOTHING IN SRI LANKA: GOVERNMENT
- POLICIES AND INVESTMENT INCENTIVES Government policiesTrade policiesInvestment incentives
- TEXTILES AND CLOTHING IN SRI LANKA: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS StrengthsWeaknessesOpportunitiesThreats
- List of tables Table 1: Sri Lanka: political and economic profile, 2021Table 2: Sri Lanka: economic indicators, 2018-21Table 3: Sri Lanka: capacity utilisation in the textile and clothing industries, 2015-21Table 4: Sri Lanka: mill fibre and yarn consumption by fibre type, 2015-21Table 5: Sri Lanka: textile and clothing exports, 2015-21Table 6: Sri Lanka: textile exports by category, 2015-21Table 7: Sri Lanka: clothing exports by category, 2015-21Table 8: Sri Lanka: textile and clothing exports by leading destination, 2015-21Table 9: Sri Lanka: clothing exports by leading destination, 2015-21Table 10: Sri Lanka: textile and clothing imports, 2015-21Table 11: Sri Lanka: textile imports by category, 2015-21Table 12: Sri Lanka: textile and clothing imports by leading supplier, 2015-21Table 13: Sri Lanka: imports of textile and clothing machinery, 2015-21Table 14: Sri Lanka: foreign direct investment (FDI) in the textile and clothingindustry, 2015-21Table 15: Sri Lanka: tax incentives approved for investors in the Eravur industrial zone, 2021
- List of map Map of Sri Lanka
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