The Economics Research Department of the Central Bank of Sri Lanka published a report entitled “External Sector Performance,” in which it highlighted that the South Asian country’s earnings from textiles and garments exports rose 6.6 percent to $396.2 million in the month of February, compared to $371.6 million from the same time a year ago.
Sri Lanka’s garment exports to the United States and the European Union increased by 8.8 percent and 8.7 percent, respectively, throughout February of this year. The U.S. is the primary importer of Sri Lanka’s textiles and accounts for more than three-quarters (76 percent) of Sri Lanka’s exports.
According to the media release, there were two important trends in the exports: an increased local value addition in the clothing sector and a boost in apparel exports to non-traditional markets, which experienced a substantial increase of 35.7 percent.
Textile and textile articles imports dropped by 5.5 percent to $346.1 million in the January-February timeframe. “Despite the strong growth in textiles and garment exports, textiles and textile article imports declined by 6.4 percent, reflecting higher domestic value addition in the garment industry,” the central bank said in a statement.
Overall, Sri Lanka’s exports shot up 5.4 percent in February. The trade deficit declined 20.7 percent to $503.7 million – the prompting of its trade deficit transpires when foreign exchange earnings outside of exports trigger imports; large numbers of exports create more imports when the revenues are spent. The nation’s credit growth has also taken as its February private credit fell.
The design, manufacture and export of textiles and apparel items remains to be one of the largest industries in Sri Lanka as it plays a substantial role in the nation’s economy because it accounts for approximately half of all its exports. It also currently employs nearly one-fifth of the country’s labor force.
Some of the top apparel makers are MAS Holdings, Brandix Lanka Limited, Penguin Group, Jay Jay Mills Lanka and Maliban Holdings.
It was reported last week that the Shri Govindaraja Textiles (SGT), a Tamil Nadu-based textile company, announced that it would invest $40 million to relocate its operations in North Carolina and generate 84 new jobs within the next two years. North Carolina Republican Governor Pat McCrory and the state’s Commerce Secretary Sharon Decker welcomed the move.
“The company will not only buy North Carolina cotton, but will produce the combed yarn here as well,” said Decker. “Innovative companies like SGR Textiles are bringing new machinery that will be put to good use by our talented workforce in Rockingham County.”
With North Carolina’s eight percent unemployment rate, Senator Phil Berger said SGT’s relocation will help create jobs: “Shri Govindaraja Textiles’ decision to expand will bring needed jobs to our community and help continue our rich tradition of manufacturing high-quality textile products.”
SGT currently maintains more than 400,000 spindles equipped with modern machineries. This assists in saving on labor costs and operates a more efficient factory – it manufactures combed or carded yarn ranging from 20s to 160s counts.
