Sri Lanka Garment Industry: Foreign Investment Has Been Withdrawn Or Pferred Due To The Economic Situation.

Sri Lanka

In the early days, because of the quota advantage of exporting to the United States, plus the monthly wages of workers around $100, relatively low quality and high quality, the garment industry was very popular at that time. In 2005, the number of garment manufacturers in Sri Lanka, including foreign capital, was as high as more than 2000.

After the 2008 Asian tsunami, the European Union also provided GSP concessions for Sri Lanka exports. According to Sri Lanka's Export Promotion Bureau, it has been 5 years since 2005, and the export volume of Sri Lanka garments has exceeded 3 billion dollars.

Recently, in addition to the abolition of the quota rules for garments in the United States, the local Tamil rebels organized a cease-fire agreement in 2005, reignited the war of independence and lasted until the beginning of 2009, and the civil war came to an end. The rebels were unable to fight against the government forces and deliberately surrendered. However, at that time, the government of the Soviet Union still adopted tough measures and insisted that the leaders of the rebel forces had expressed their willingness to surrender to the rebel army. The United States and European Union's human rights groups were strongly dissatisfied with the act of the government. In early 2010, the European Union cancelled the GSP preferential treatment of the country with Sri Lanka's serious violation of human rights.

Foreign orders, especially from the European Union, have been greatly reduced. Many buyers are still enjoying GSP concessions such as Bangladesh, which has led to a sharp reduction in the clothing industry in Sri Lanka.

Sri Lanka's exports amounted to US $8 billion 700 million in fiscal year 2011, of which apparel exports were estimated at US $3 billion 500 million, which was 41% higher than that of the country's largest export earning industry.

At present, the number of garment factories in the country has been reduced to about 250 from 2000 in full bloom, and many foreign capital have been withdrawn or pferred to local businesses, but the ready-made garments are still the largest in the country.

There are about 1 million employed people.

Since Sri Lanka does not have any fabric and garment accessories accessories factory, the necessary fabrics, accessories, printing dyestuffs and related garment machinery, such as computerized embroidery, all depend on imports.

For example, the local market still has huge business opportunities, and the European Union's cancellation of the GSP offer is not a GSP discount. The EU can still enjoy 3% duty-free preferential treatment for the EU.