Sri Lankan textiles and garments exports that comprise nearly 52 percent of total exports, during the month of February witnessed modest increase by 10.3 percent and helped to curb the negative growth of total exports to some extent, according to the Central Bank of Sri Lanka (CBSL).

Garments exports to the European Union and the United States have increased by 11.7 percent and 8.7 percent, respectively, in February 2016.

However, overall earnings from exports declined by 1.7 percent, year-on-year, to US dollars 888 million in February 2016 from a year ago due to reflecting lower commodity prices in the international market.

The island’s trade deficit contracted 11.9 percent in February 2016 year-on-year to $552 million, owing to the sharp decline in imports which significantly outpaced the fall in exports, a statement said.

On a cumulative basis, earnings from exports declined by 2.0 per cent to US dollars 1,783 million during the first two months of 2016.

The leading markets for merchandise exports during the first two months of 2016 were the USA, UK, Germany, India and Italy accounting for about 54 percent of total exports.

Expenditure on imports declined by 5.9 percent, year-on-year, to US dollars 1,439 million in February 2016, continuing the year-on-year declining trend observed in the preceding seven months.

Sri Lanka is looking to increase total apparel exports by five-fold, to $ 20 billion and by 2020 they are aiming at $50 billion national exports, which is an ambitious goal, while China’s premium knitting sector is gearing up to partner with surging Sri Lankan apparel sector.