Sri Lanka's garment exports fall 6.3% to $3.1bn in January–August 2026

Sri Lanka's garment exports declined 6.3% to $3,108.3 million in January–August 2026, according to Central Bank of Sri Lanka data reported by Fibre2Fashion on 4 October. The figures come from the bank's external sector performance report for August 2026.

Textile exports fell faster, down 9.4% to $177.6 million over the same period, while exports of other manufactured textile articles dropped 14.2%, the report said. Together, the three categories add up to about $3.3 billion for the eight months.

The contraction affects the island's most important manufacturing export. Textiles and garments remain a major share of Sri Lanka's industrial exports, although the exact percentage for 2026 is behind the publication's paywall, as is the trend in the country's textile imports.

The fall comes at a time of soft demand in Western markets. A separate Fibre2Fashion analysis published on 1 October found that EU27 apparel imports declined in January–July 2026, with buyers shifting orders between suppliers.

What it means for Egyptian exporters

Sri Lanka competes with Egypt for orders from European and US brands, particularly in knitwear, lingerie and branded basics. A decline in its shipments shows that even well-established supply bases are losing business in a weak market. Egyptian factories courting the same buyers can stress shorter transit times to Europe and a vertically integrated cotton chain, while recognising that Sri Lanka's slide reflects weaker demand as much as a loss of competitiveness.