Textile Industry in Sri lanka


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Textile Industry in Sri lanka

  1. 1. Textile & Apparel Industry in Sri Lanka
  2. 2. • Ms Amali Damayanthi • Ms Yohashini Senevirathna • Ms Malithi De Costa • Ms Amali Bogamuwa • Mr U J Samarasinghe • Mr D N Gunawardena • Mr AA T Basnayake 2
  3. 3. Introduction 3
  4. 4. • The Sri Lankan textile and apparel industry is a pivotal driver in employment, utilizing 15% of work labor available. • 85% of this workforce are women. • It contributes 39% to industrial production while representing 43% of total export value over the late 2000's. • Over the past two decades since its arrival into mainstream export production the country has strategically developed a skill base in research, design and innovation accounting for top quality manufacturers. 4
  5. 5. • The sector also maintains high ethical standards and remains continuously commended for its clean bill on compliance and decent labor practices against its counterpart manufacturing destinations. • Sri Lanka is among the top apparel-producing countries in the world relative to its population • It is considered as Sri Lanka’s number one foreign exchange earner. 5
  6. 6. • The industry provides over 300,000 direct employment opportunities and 600,000 indirect in Sri Lanka. • Today, the garment industry occupies a pre-eminent position in Sri Lanka. • Sri Lanka's major producers service some of the biggest apparel brands in the world such as Nike, Victoria's Secret, Ann Taylor and Marks and Spencer. 6
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  8. 8. • The United States is the main importer of textile goods from Sri Lanka, accounting for 76% in total. • Sri Lanka is ranked 12th among the top apparel exporters to the United States in terms of value. 8
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  10. 10. History 10
  11. 11. • 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. 11
  12. 12. 12
  13. 13. • 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 • began to grow significantly in the 1980s • 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. 13
  14. 14. • 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 Fiber 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 14
  15. 15. • 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 15
  16. 16. Distribution of Textile and Wearing Apparel Industry 16
  17. 17. • Textile and Wearing Apparel industry contributes for 21.2% of the total number of all industrial establishments in the country. • Thirty percent of the establishments in the Western province belong to Textile and Wearing Apparel Industry. • The large scale establishments in Textile and Apparel industry are converged in the Colombo and Gampaha districts while the small and medium scale establishments represent a scattered pattern in distribution. 17
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  19. 19. Employment in Textile and Apparel Industry 19
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  21. 21. • It showed number of employees in different categories as a percentage of the number of employees in all industrial sectors. • The proportion of female operatives in the Textile and Wearing Apparel industry is very significant. • 62% of the female operatives in the industrial sector work for the Textile and Wearing Apparel industry. • It is obvious that the number of females in all employee categories exceeds the proportion of male employees in the industry. • The gap between two sexes is much higher with operatives.21
  22. 22. • In terms of the nature of the employees, Textile and Wearing Apparel industry accounts for o47% of skilled laborers o34% of un-skilled laborers o31% administrative workers o41 % of technical workers o20% of clerical workers o35% of other workers of the total employees in industrial sector. 22
  23. 23. Sri Lanka's Competitive Advantages in the Garment Sector 23
  24. 24. • A well established, export oriented manufacturing industry. • A ready supply of raw material and an expanding resource base. • A literate, trainable workforce. • Geographical location & infrastructure advantages. • Compliance with the best international labor and environmental laws and practices. 24
  25. 25. • Market and investor friendly policies of the government. • An array of attractive incentives extended for the textile/apparel industry. • Unlimited quota free access to the EU markets. • Preferential access to Indian market including duty-free concessions provided by the Free Trade Agreement (FTA) between Sri Lanka and India. 25
  26. 26. MAJOR EXPORTERS • MAS Group • Brandix Group • EAM Maliban Textile (Pvt) Ltd • Smart Shirts Lanka (Pvt) Ltd • Sirio Ltd • Polytex Garments Ltd • Crystal Martin Group • Hirdaramani Group • Courtaulds Clothing Lanka (Pvt) Ltd • Omegaline (Pvt) Ltd 26
  27. 27. Export Processing Zones 27
  28. 28. Statistics • Production of Textile Industry (54) • Exports (56) • BOI statistics (63) • External Trade and Finance (83) 28
  29. 29. References • www.google.lk • http://en.wikipedia.org/wiki/Textile_industry • http://archive.cmb.ac.lk 29
  30. 30. THANK YOU