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Trade friction between the U.S. and China could help Sri Lanka to expand exports

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container-ship-overheadjpg-2“Trade friction between the U.S. and China could help countries like Sri Lanka improve exports,” Wing Tak Bill Lam, Chairman, Teejak Lanka feels that. Lam says Sri Lankan’s textile and clothing exports are likely to decline in the near term, especially to key European and US export destinations.

In the first six months of this year, Sri Lankan exports of apparel declined from $2.6 billion a year ago by 30 per cent to $1.8 billion. In the first six months of this year, clothing exports to the European Union declined 32% to $753 million from $1.1 billion a year earlier, while exports to the US declined 27% to $830.5 million from $1.14 billion in the same period.

But with the world pandemic COVID-19, many businesses are now afraid of depending on their supply chain destinations. These markets now switch from China to partners with other South Asian countries, Sri Lankan media reports claim, and Sri Lankan clothing producers can easily tap into these countries. Apparel Export Association’s statistics indicate that clothing exports reached 382 million USD in June of this year, down by 20.5% on 481 million USD reported in last year’s corresponding month.

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