The Joint Apparel Association Forum (JAAF) has announced that Sri Lanka’s apparel exports recorded a modest year-on-year growth in September 2025, supported by stronger performance in the EU and other markets, despite declines in shipments to the United States and the United Kingdom. 

Issuing a statement, JAAF stated that whilst the numbers are down from last month, it warrants mentioning that September has historically been lower than August. 

In September 2025, total apparel exports amounted to US$ 403.01 million, reflecting a 1.58 per cent increase compared to US$ 396.73 million in September 2024. 

Exports to the USA and the UK declined by 4.71 per cent and 15.06 per cent respectively, while exports to the European Union rose by 10.75 per cent and shipments to other destinations grew by 19.49 per cent.

Despite mixed market trends during the month, the industry maintained steady progress over the first nine months of the year. Total apparel exports for the period January to September 2025 stood at US$ 3,798.25 million, marking a 6.83 per cent increase compared to US$ 3,555.54 million recorded during the same period in 2024.

Exports to the United States grew by 1.73 per cent to US$ 1,461.02 million, while the EU (excluding the UK) recorded a strong 14.24 per cent growth, reaching US$ 1,173.21 million. Exports to the United Kingdom rose by 2.31 per cent to US$ 533.73 million, and other markets expanded by 10.45 per cent to US$ 630.29 million.

“While demand from some traditional markets continues to fluctuate, our exporters have demonstrated remarkable adaptability through efficiency, innovation, and market diversification. The positive cumulative growth highlights the strength and competitiveness of Sri Lanka’s apparel sector even amid global headwinds,” JAAF said.

The Association reaffirmed its commitment to working closely with the Government of Sri Lanka and industry stakeholders to ensure policy alignment, support small and medium manufacturers, and sustain the industry’s position as a reliable, ethical, and future-ready sourcing destination. (Newswire)

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The Joint Apparel Association Forum (JAAF) has raised concerns over the removal of the Simplified Value Added Tax (SVAT) scheme, set to take effect on Oct. 1, warning that untested refund systems could disrupt Sri Lanka’s export sector.

Issuing a statement, JAAF said while the forum is committed to working with the government authorities to remove the SVAT, it has repeatedly highlighted the need for a proven, seamless refund mechanism to safeguard cash flows and maintain industry stability.

The apparel industry, one of the country’s largest foreign exchange earners, estimates it will pay about Rs. 12 billion in VAT to the Inland Revenue Department (IRD) once SVAT ends, JAAF said.

Exporters are legally entitled to refunds within 45 days, but JAAF stressed that delays would put pressure on cash flows and supply chains already hit by falling global prices and reciprocal tariffs from the United States.

Suppliers to the industry — deemed exporters who helped develop Sri Lanka’s USD 1 billion raw material base — are also expected to face immediate competitiveness challenges.

While the IRD has given assurances that refunds will be processed faster than the 45-day legal limit, JAAF said no pilot scheme has been conducted to prove the system’s readiness.

It also flagged unresolved issues with aligning data between Customs, the IRD, and exporters. The industry previously urged the adoption of an e-invoicing solution to ensure a seamless digital refund process, but the pilot project remains at the technical stage and will not be ready before Oct. 1.

“Ensuring refunds within 45 days will make the difference between continuity and disruption for thousands of exporters,” a JAAF spokesperson said, calling for a phased or deferred implementation until systems are fully proven, similar to the approach taken with VAT on digital services.

JAAF said it will continue to work with the IRD, Customs, and other authorities to minimize disruption to export competitiveness during the transition. (Newswire)

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Sri Lanka’s apparel exports in May 2025 remained relatively flat with a slight dip of 0.63% compared to the same month last year, totalling US$365.08 million, according to the Joint Apparel Association Forum (JAAF).

Issuing a statement, JAAF said that while shipments to the EU grew by 5.15% and exports to other markets rose sharply by 11.1%, this growth was offset by contractions in key markets. 

Exports to the USA and UK declined by 7.59% and 6.81% respectively, reflecting ongoing demand volatility in Western consumer markets.

Despite the dip in May, cumulative exports for the period January to May 2025 show a strong recovery trajectory, with total earnings increasing by 9.8% to reach US$2.02 billion. 

Exports to the EU (excluding the UK) saw the most significant growth at 15.36%, followed by 13.12% growth in non-traditional markets. Shipments to the USA and UK also recorded moderate gains of 6.52% and 3.74% respectively.

Commenting on the performance, JAAF says, “The industry’s year-to-date performance demonstrates resilience and adaptability, driven by strategic market shifts and continued investment in value-added products. We are encouraged by the momentum, particularly in emerging and EU markets.”

To sustain this progress, JAAF reiterates the importance of a stable and predictable trade policy environment that enables long-term competitiveness and supports exporters navigating global headwinds. (Newswire)

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The Joint Apparel Association Forum (JAAF) has called on the Sri Lankan government to urgently resolve ongoing challenges related to the issuance of short-term business visas, which have been halted since August 2.

Issuing a statement, JAAF noted that all official foreign business visitors, including buyers, machinery suppliers, and technical service providers, have faced significant hurdles entering Sri Lanka due to the lack of a proper business visa issuance system.

While tourist visas are available on arrival, there is currently no facility to issue business visas through this channel. Foreigners arriving for short-term business visits are not eligible for tourist visas, leaving a critical gap in the country’s ability to accommodate overseas business visitors. JAAF points out that these visitors are essential to the nation’s economic recovery, particularly in sectors like apparel and manufacturing, where international engagement is vital for exports and business expansion.

Adding to the confusion, the immigration website remains outdated, offering no helpful guidance for business visitors seeking entry to Sri Lanka. This lack of clarity is creating further uncertainty, impacting the flow of international business. Additionally, while there have been discussions around visa-free entry for 35 countries, the implementation of this policy has been delayed, further complicating the situation.

“Sri Lankan enterprises are at a critical juncture in their ongoing recovery efforts. At such a moment, it is incumbent on the Government to take all possible measures to streamline the flow of not just goods, but also personnel. Business travellers often have specific requirements, including the need to carry samples, documents, and other materials while travelling. For the benefit of Sri Lanka’s business and export community, swift action is needed to implement a solution that facilitates international business travel and restores confidence in Sri Lanka as a business-friendly destination,” JAAF Secretary General Yohan Lawrence said.

Accordingly, JAAF urged the Government to authorize Sri Lankan embassies overseas to issue short-term, single-entry business visas as an interim solution. This would ensure that genuine business visitors can legally travel to Sri Lanka on the appropriate visa preventing further disruption to trade and industry.

Recent discussions with the Sri Lanka Tourism Development Authority (SLTDA) and the Sri Lanka Tourism Promotion Bureau (SLTPB) suggest that efforts are being made to resolve the issue. However, no timeline has been provided, and businesses continue to experience significant delays and uncertainty. (Newswire)

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