Sri Lanka apparel sector to lose US$110–290 m from US tariffs
- CNL Reporter
- July 28, 2025
- Political
- Sri Lanka apparel sector
- 0 Comments
First Capital Research (FCR) is forecasting a loss of $ 110 million to $ 290 million in the short-to-medium term for the export apparel sector on account of the high US tariff.
In a special report on the US tariff, FCR said according to industry experts, 60% to 70% of apparel exports are value-added products that require advanced skills and training. However, due to the simplicity of the sewing process, orders can be transferred within six months.
Relocating orders to cheaper countries may reduce apparel volumes by 10%-15%, with an apparel export loss of $ 290 million in the near term, FCR said.
It anticipates apparel and textiles exports may reduce by 5% due to the global economic slowdown by 2026, on par with the decline witnessed during the 2009 world economic recession. Accordingly, FCR expects a net export loss of $ 110 million in the short term
