Sri Lanka is an important apparel manufacturing and export center in South Asia . The nation has been exporting quality garments to major markets like US and EU over the last few decades. However, over the years, the apparel exports have reduced – while in 2000 the apparel exports were about 49% of total exports of Sri Lanka, in 2011 , the figure dropped to 38%.
Also, the last 2 years have not been very good for Sri lanka . On the one hand it lost the GSP+ facility to EU due to disagreement over certain clauses and as a result lost over $ 1 billion (estimated) in exports, , its exports to US have also dropped. When we look at the exports of denim apparel, the scenario has worsened in 2012 with a fall of over 34% . Lets look at the chart below :
In a single year 2012 , as compared to 2011, the exports of denim apparel to US fell about 34% . While a number of reasons have been attributed for the same – including rising labour costs and economic situation in US , the exact reasons are still to be explored. If we look at the average prices, it is surprising to see that the same to have fallen by about 5 % .