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ern consumer demands to compete with the other countries, mostly the South East Asian countries. National economy will definitely be affected if the country fails to address the drawbacks in the industry.

3.The aim of my research is to identify the weaknesses in the apparel sector and to suggest favourable and appropriate solutions to secure the industry.

RESEARCH HYPOTHESIS

4.It is hypothesized that the reason for not upgrading with the latest technology and consumer demands is lack of capital, incompatible demands and high competition.

SCOPE OF THE STUDY

5.The scope of the study covers an assessment of the ready made garment industry in Sri Lanka taking three well known factories in to consideration. Factors that had been an impact to the industry will be identified through the research and the root causes of the problem will be then be identified. Recommendations will be made for the improvement.

METHOD OF DATA COLLECTION

6.The required data for the research will be drawn from the following sources;

a.Primary sourcesPrimary sources will include information collected by interviewing resource personnel in the garment sector.

b.Secondary sourcesInformation will be gathered from relevant books, journals, the internet, treaties, conventions as well as international and local enactments of relevance.

CHAPTER TWO

OVERVIEW OF THE APPAREL INDUSTRY

HISTORY

1.The textile and clothing industry had emerged from a modest beginning in the early 1950s A few pioneering industrialists who started out on an uncertain course at this time , confident their manufacture to only some popular items of garments and catered essentially to local demand. By the end of the 1950’s there was a reversal in policies and the economy moved towards restrictions on imports and a policy of import substitution in industry began to be perused. While the major basic industries were reserved for the state; a wide range of consumer goods industries were opened to the private sector , which was provide with various investment incentives and a protected market. Over the decade of the 1960’s as many as 300 categories of industrial products began to be manufactured locally. Among this range of products a major item was textiles and another ready made garments, though from the outset raw materials required for the garments industry were imported.

2.It was in the late1960’s that Sri Lanka’s ready made garments began to break into export markets. Sri Lanka’s shirts had found acceptability in markets such as the UK and Soviet Union and a leading shirt manufacture began exporting up to Rs:2 million worth of product annually to the USSR, within the bilateral trade agreement between Sri Lanka and the USSR.

3.Around 1972 there was a change in outlook towards the industry as existing policy was altered to allow certain sectors to adapt an export oriented approach. Special foreign exchange allocations and other fiscal and tax incentives were offered to selected export oriented industries under this package. In the first six years of the 1970’s over 2500 industrial units received approval from the Local Industries Approve Committee (LIAC) and of these nearly 2000 were