Sri Lanka: Cotton Yarn Market 2025

Cotton Yarn Market Size in Sri Lanka

The Sri Lankan cotton yarn market shrank to $X in 2022, which is down by -5.9% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total consumption indicated a temperate expansion from 2012 to 2022: its value increased at an average annual rate of +3.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +41.8% against 2020 indices. As a result, consumption reached the peak level of $X, and then reduced in the following year.

Cotton Yarn Exports

Exports from Sri Lanka

Cotton yarn exports from Sri Lanka fell to X tons in 2022, which is down by -5.1% compared with 2021 figures. Over the period under review, exports continue to indicate a abrupt shrinkage. The most prominent rate of growth was recorded in 2013 when exports increased by 89% against the previous year. The exports peaked at X tons in 2014; however, from 2015 to 2022, the exports remained at a lower figure.

In value terms, cotton yarn exports contracted modestly to $X in 2022. In general, exports saw a deep downturn. The most prominent rate of growth was recorded in 2013 with an increase of 86%. Over the period under review, the exports hit record highs at $X in 2014; however, from 2015 to 2022, the exports remained at a lower figure.

Exports by Country

India (X tons) was the main destination for cotton yarn exports from Sri Lanka, accounting for a 91% share of total exports. Moreover, cotton yarn exports to India exceeded the volume sent to the second major destination, Indonesia (X tons), more than tenfold.

From 2012 to 2022, the average annual growth rate of volume to India totaled +19.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Indonesia (-7.8% per year) and Turkey (-30.9% per year).

In value terms, India ($X) remains the key foreign market for cotton yarn exports from Sri Lanka, comprising 89% of total exports. The second position in the ranking was held by Indonesia ($X), with a 3% share of total exports.

From 2012 to 2022, the average annual growth rate of value to India amounted to +26.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Indonesia (-7.5% per year) and Turkey (-28.0% per year).

Export Prices by Country

In 2022, the average cotton yarn export price amounted to $X per ton, with an increase of 2.3% against the previous year. Over the last decade, it increased at an average annual rate of +1.1%. The pace of growth was the most pronounced in 2021 an increase of 27%. The export price peaked in 2022 and is likely to continue growth in the immediate term.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Turkey ($X per ton), while the average price for exports to Indonesia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to India (+5.4%), while the prices for the other major destinations experienced more modest paces of growth.

Cotton Yarn Imports

Imports into Sri Lanka

Cotton yarn imports into Sri Lanka contracted to X tons in 2022, shrinking by -14.5% compared with 2021. Overall, imports, however, continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 when imports increased by 20% against the previous year. As a result, imports reached the peak of X tons, and then fell in the following year.

In value terms, cotton yarn imports declined to $X in 2022. Over the period under review, total imports indicated a pronounced increase from 2012 to 2022: its value increased at an average annual rate of +3.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +67.2% against 2020 indices. The pace of growth was the most pronounced in 2021 with an increase of 71% against the previous year. As a result, imports attained the peak of $X, and then declined slightly in the following year.

Imports by Country

In 2022, India (X tons) constituted the largest supplier of cotton yarn to Sri Lanka, with a 66% share of total imports. Moreover, cotton yarn imports from India exceeded the figures recorded by the second-largest supplier, Pakistan (X tons), sixfold. The third position in this ranking was taken by Vietnam (X tons), with a 9.8% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from India amounted to +2.8%. The remaining supplying countries recorded the following average annual rates of imports growth: Pakistan (+5.3% per year) and Vietnam (+26.1% per year).

In value terms, India ($X) constituted the largest supplier of cotton yarn to Sri Lanka, comprising 61% of total imports. The second position in the ranking was taken by Vietnam ($X), with a 14% share of total imports. It was followed by Pakistan, with an 11% share.

From 2012 to 2022, the average annual growth rate of value from India amounted to +5.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Vietnam (+38.7% per year) and Pakistan (+8.9% per year).

Import Prices by Country

In 2022, the average cotton yarn import price amounted to $X per ton, surging by 15% against the previous year. Overall, import price indicated noticeable growth from 2012 to 2022: its price increased at an average annual rate of +3.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, cotton yarn import price increased by +63.3% against 2020 indices. The most prominent rate of growth was recorded in 2021 when the average import price increased by 42%. The import price peaked in 2022 and is expected to retain growth in years to come.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Vietnam ($X per ton), while the price for Indonesia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Vietnam (+10.0%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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