Despite an increase in earnings from garment exports to the US and EU, Sri Lanka is losing market share to competitor countries Bangladesh, India, Vietnam, Pakistan and Cambodia, the Institute of Policy Studies (IPS) says.

“Despite considerable increases in absolute export earnings to both and US and EU markets, it is of concern to note that Sri Lanka’s relative market share in garment exports has been losing ground. The increase in export earnings over the years has been due largely to a shift in Sri Lankan garment exports from the US to EU,” the IPS said in its recent flagship publication ‘Sri Lanka: State of the Economy 2012’.

“Sri Lanka has been seeing a steady decline in its market share in the US from 2.3 percent in 2005 to 1.8 percent in 2011. Sri Lanka has been losing out to countries such as Pakistan, Vietnam, Bangladesh, Indonesia and Cambodia. Pakistan’s share in the US apparel market was significantly below that of Sri Lanka in 2005 at 1.8 percent, but is now ahead at 2.1 percent. Diversification of its product range, marketing and large investments in value-added sectors including sewing machines, stitching, knitting, finishing and knitting processing have contributed towards Pakistan’s progress,” the IPS said.

LEAVE A REPLY

Please enter your comment!
Please enter your name here