Sri Lanka is capable of producing various handloom textile products to foreign markets. There is an increasing demand for Sri Lankan handloom textile products in foreign countries. Italy, Germany, France, UK, Norway, Netherlands, Maldives and Thailand are the main export markets for Sri Lankan handloom textile products. The combination of traditional designs blended with modern trends in modern material woven in new processing techniques has made export quality Sri Lanka Handlooms access the competitive international market.
The handloom textile industry is a highly labour intensive, export oriented rural based industry. However, lack of weavers and the high production cost has hampered the growth of the industry considerably. There is a slight decrease in the current workforce in the industry as it is labour intensive.
Handloom textiles are produced in Sri Lanka within the confines of a small-scale industry that generate employment to rural women. Among the Handloom textiles produced are household linen such as bedclothes and towels, upholstery materials, furnishing materials such as curtaining, cushions covers, saris and sarongs. Books, notebooks, albums, and even writing pads are now clothed with this handcrafted material of textile. The handloom woven cotton and silk textiles of vibrant colors have been popular among the locals as well as the tourists.