Apparel industry of Sri Lanka

The design, manufacture and export of textiles and apparel products is one of the biggest industries in Sri Lanka, and one which plays a key role in advancing the country's economy. The apparel industry of Sri Lanka employs about 15% of the country's workforce, accounting for about half of the country's total exports, and Sri Lanka is among the top apparel-producing countries in the world relative to its population.

Sri Lanka's apparel industry began to grow significantly in the 1980s as an alternative to India's garment manufacturers, because of its open economic policy as well as the trade and investment friendly environment. Under the Multi Fibre Agreement, quota regime Sri Lanka became an attractive new venue for businesses. In 1985, Martin Trust, one of the pioneers in the development of "speed sourcing" for the American fashion retail sector, began working with Sri Lankan textile and apparel companies. In 1986 and 1987 he established joint venture partnerships with The Omar Group (formerly known as LM Apparels and part of the Brandix group) and The Amalean Group which helped make the country more competitive through knowledge transfers and technology, attracting further foreign investors. These were the first of nearly two dozen joint venture companies in Sri Lanka which made the country competitive in the garment sector. Including Trust's partnership with German brassiere maker, Triumph International, and Sri Lankan company, MAS Holdings, to create a new venture called Bodyline.

When the US and other countries eliminated quantitative restrictions on garments produced in China, many garment facilities in Sri Lanka were consolidated. As of 2010, most of the exports to the US are from MAS or Brandix, with smaller amounts coming from the Hirdaramani Group & Jay Jay Mills Groups. Together, these three companies account for a majority of the value of exports of garments to the US market.

Over the next few decades, the apparel industry grew to represent Sri Lanka's number one export. Following a 38% increase in textile-based revenue from 1996 to 1997, in which the industry generated $2.18 billion in earnings, 50 new textile factories opened in Sri Lanka in 1998. As of 1998, the Sri Lanka apparel industry employed about 300,000 people in 800 factories. Sri Lanka nationals are primary owners of 85% of the small-to-mid-sized factories, while larger operations are typically joint ventures or foreign-owned.

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