Driven by double digit growth in apparel exports to the US market, Sri Lankan garment exports rose 7.96% year over year to reach to US $394.14 million in May 2026.
Clothing exports in May 2026 to the US surged 15.36% over a year ago month to total $149.96 million. The month of May also recorded the highest value in apparel exports in the ongoing year.
However, in the first five months of the current year, exports of clothing declined 4.68% year on year to $1.93 billion.
The double digit growth to Sri Lanka’s biggest garment export market comes in the backdrop of a Section 301 investigation by the Office of the US Trade Representative (USTR).
The Section 301 investigation is probing use of forced labour in garments destined for the US and may result in an additional tariff of 10% or 12.5% for various countries.
A recent US government report, named Sri Lanka among 46 countries which will face a higher tariff rate of 12.5%.
However, other Asian countries like Indonesia, Cambodia, Pakistan and Bangladesh will face the lower tariff rate of 10% since these countries have take actions to reduce forced labour.
Image courtesy: SLAEL
