The Profile of Textile and Wearing Apparel Industry in Sri Lanka

Abstract

The Textile and Apparel industry occupies a prominent position in Sri Lanka’s industrial structure. It is the biggest employer in manufacturing sector and it is considered as Sri Lanka’s number one foreign exchange earner. The Textile and Apparel industry is not merely a type of industry in Sri Lanka but it represents the major economic, political and social changes that took place in the country. After the independence the governments held the rein of the country made attempts to initiate industrial activities. The local industries were protected by the government intervention under the industrial policy in 1950s. However, Textile and Wearing Apparel industry was not even included as a category of exports in national accounts in early 1950s (Central Bank Reports). In the 1960s and early 1970s the existence of a well-run Textile industry was evident that was underpinned by the government intervention following an import substitution strategy. After the introduction of open economic policies in 1977 the outlook of the industry was totally changed within an export-oriented strategy. Since the late 1970s the industry gradually acquired the relative importance of traditional agricultural exports and became the highest export earner by the mid 1980s (Tennakoon 1999). The total industrial exports account for approximately 77% of the total exports while textile and Wearing Apparel industry solely accounts for 67% of industrial exports.