Sri Lanka's apparel exports fell 1.6 percent to 1.98 billion rupees in the first six months of 2012, with June shipments falling 6.3 percent to 310.6 million US dollars.
Brandix director A J Johnpillai however said revenues at his firm are in positive territory with strong demand from the US helping offset a weakened European market.
State overspending in several European countries had scared debt markets, leading to uncertainty default fears, which in turn had also affected bank balance sheets.
Sri Lanka's central bank said the falling dollar amounts were partly due to a reduction in cotton prices.
Johnpillai confirmed that prices had fallen.
"We are shipping higher volumes," he said.
Brandix runs 42 plants in Sri Lanka, India and Bangladesh, with revenues this year expected to reach 600 million dollars from 540 million dollars last year.
The firm is on a drive to cut its environmental impact by becoming more energy efficient, using more renewable, cutting water use and recycling and reducing solid waste.
European customers in particular who are more environmentally conscious appreciate the efforts, Johnpillai said.