The report admits that immediately after ending of textiles quotas, Sri Lanka's export growth slowed to 3 percent in 2005 as compared to that of Bangladesh and Vietnam, which registered 15 percent and 12 percent, respectively.
'It is not clear to what extent this reflects underlying trends versus short-term fluctuations—garments industry representatives report strong order books, a growing niche market for Sri Lankan apparels, and increased backward linkages which would reduce costs and turnover periods' harks the report.
Furthermore, Sri Lanka has maintained its competitive edge in tea and spice exports, which accounts for about 15 percent of total exports.
Rounding off, the report says “The authorities appeared less worried about the recent drop in the export market share of garments and textiles, noting that order books look promising for the year, and that Sri Lanka still maintains a niche market in apparel. They also expect the Generalized System of Preferences (GSP) to yield positive results.”
Sri Lankan textiles and apparel exports projections for the 2006, 2007, 2008, 2009 and 2010 are US $3,012, 3,133, 3258, 3388 and 3524 million respectively, mentions the IMF report.
International Monetary Fund, USA
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