"Sri Lanka’s apparel sector faces up to $290 million loss from US tariffs", 28 July 2025

Sri Lanka’s apparel sector could lose between $110 million and $290 million in export earnings due to recently imposed high US tariffs, according to new data from First Capital Research (FCR).

The newly adjusted 30% tariff rate, though reduced from an initial 44%, keeps Sri Lankan products priced well above those from regional competitors. The US accounts for nearly 40% of Sri Lankan garment exports...

First Capital Research (FCR) forecasts that apparel export volumes could drop by 10% – 15% as American orders shift to countries like Vietnam and India...If these relocations occur, sector losses may reach $290 million in the short term, claims FCR.

The research also warns of an 11% decline in employment in Sri Lanka’s apparel sector, with the industry’s contribution to GDP falling by 0.6%...