## Apparel Sector Targets US$ 5.5 Bn Export Revenue in 2026 📈

Sri Lanka’s apparel & textile industry is projected to undergo a "major transformation" this year, with authorities forecasting a strategic rebound despite a slow start in January. • Overall Targets & Growth: The sector aims for US$ 5.5 Bn in export revenue for 2026. This follows a solid 2025 performance, where exports grew by 5.34% YoY, totaling US$ 4.91 Bn. • Market Access & Trade Concessions: United Kingdom: Zero tariffs on more garments under liberalised rules of origin via the Developing Countries Trading Scheme (DCTS). United States: Significant tariff reduction from 20% to 10% expected to boost competitiveness. European Union: Continued leverage of the GSP+ facility to navigate high price sensitivity. • Short-term Performance & Outlook: January 2026: A temporary setback saw exports decline 2.82% YoY to US$ 447.25 Mn, primarily due to lower shipments to the US and EU. Strategy: The EDB expects a February rebound, focusing on a shift toward higher-value products to mitigate global demand volatility and sustain long-term growth.