PTA To Boost Fabric & Yarn Trade Between Sri Lanka & Bangladesh

As major exporters of apparel and rivals on the world market, a preferential trade agreement (PTA) between Bangladesh and Sri Lanka has the potential to increase bilateral trade in fabric and yarn. The textile industry's key components, fabric and yarn, present opportunities for increased trade between the two countries. Both Bangladesh and Sri Lanka are currently net exporters of fabric and yarn, and both nations rely heavily on exports of clothing to generate foreign exchange. 

In an effort to boost bilateral trade between the friendly countries, Sri Lanka recently asked Bangladesh to pick up the PTA negotiations. Next week, a virtual meeting to discuss the situation now and the way forward has been suggested by the Lankan High Commission in Dhaka. 

After COVID-19, Sri Lanka's exports of fabric to Bangladesh nearly doubled in size in just two years, rising from $22.678 million in 2020 to $41.133 million in 2022. In 2021, $22.678 million, $32.944 million, $33.068 million, $32.944 million, and $32.944 million worth of fabric were exported from Sri Lanka. According to sources, Bangladesh was the source of fabric imports worth $5.551 million in 2022, $7.721 million in 2021, $7.206 million in 2020, $6.900 million in 2019, and $2.611 million in 2018.

Sri Lankan yarn exports have experienced impressive growth in recent years, with shipments reaching $5.752 million in 2021, up from $1.273 million in 2018. However, there has been some volatility in these figures over the years. Yarn exports dipped to $0.890 million in 2019, then surged to $3.867 million in 2020. While the upward trend continued to $5.752 million in 2021, exports decreased to $4.511 million in 2022. 

However, according to sources, Sri Lankan yarn imports from Bangladesh were much lower than average, totaling $1.192 million in 2022, $2.383 million in 2021, $1.707 million in 2020, $0.883 million in 2019 and $1.230 million in 2018.

Following COVID-19, Sri Lanka's fabric exports to Bangladesh increased from $22.678 million in 2020 to $41.133 million in 2022, nearly doubling in size in just two years. Sri Lanka exported fabric worth $22.678 million, $32.944 million, $33.068 million, $32.944 million, and $32.944 million in 2021. In 2022, $7,721 million, $7,206 million, $6,900 million, $2.911 million, and in 2020, 2020, and Bangladesh were the countries from which fabric imports totaled $5.551 million, $7,721 million, $7,206 million, and $2.611 million.