Sri Lanka, April 28 -- Sri Lanka's apparel industry has identified a series of targeted policy measures to revive growth after exports fell by 8% in the first quarter of 2026, reflecting both global headwinds and rising domestic costs. SriLanka Tourism

Industry data shows a gradual deterioration through the quarter, with a modest 3% dip in January deepening to 11% contractions in February and March. Analysts attribute part of the downturn to softening global demand, compounded by escalating geopolitical tensions in the Middle East toward late February, which are expected to further disrupt supply chains in the coming months.

Manufacturers are also grappling with mounting operational expenses. Rising fuel and electricity costs have added...