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从远古时代开始，斯里兰卡有着以农业为基础的传统经济。随着工业革命扎根于欧洲，后来蔓延到世界其他国家，在这种情况下斯里兰卡逐渐找到了它的位置。20世纪50年代初，斯里兰卡工厂规模化生产的成衣服装，成为斯里兰卡经济的第一大产业。在预自由化时期（前1977年），国内纺织行业仅限于由政府运行一些大型的纺织等行业，基本上是进口替代行业。纺织行业在此期间并没有取得多大进展。在20世纪60年代中期，服装行业开始兴起，但不同的是纺织行业前期是由私人部门主要运行。最初，几乎所有生产的服装都是面向国内的市场，在此期间出口很难。有很大一部分的行业是掌握在少数几家公司手中。由于纺织品的进口被禁止或限制，当地生产的纺织品主要是用于服装行业。

Can sri lanka face financial challenges

Sri Lanka has traditionally been an agro-based economy from the ancient time. With the Industrial Revolution taking root in Europe and later spreading to the rest of the world, Sri Lanka too had to take its place in this scenario. Factory scale production of ready made garments in Sri Lanka had its beginnings in the early 1950s to become the largest industry in the Sri Lankan economy. During the pre-liberalization era (pre-1977), the domestic textile industry was essentially an import substitution industry confined to a few large-scale textile industries run by the government. The textile industry did not make much progress during this period. The garment industry has its origins in the mid- 1960s, but unlike the textile industry, the former was mainly run by the private sector. Initially, almost all of the garments produced were for the domestic market and there were hardly any exports during this period. A large share of the industry was in the hands of few companies. Since the importation of textiles was either banned or restricted, locally produced textiles mainly fed the garment industry.

GARMENTS: All external and internal finished common clothing items such as shirts, T’ shirts, pants, dresses, sports clothing, fashion garments, under garments etc.

APPAREL : finished clothing that can be considered as supporting clothing or accessories such as jackets, lingerie, leather clothing, knitted garments, shoes, hats, gloves, fashion accessories etc.

The period after the late 1970s saw a rapid expansion of the garment industry in Sri Lanka. The phenomenal growth during this period can be attributed to three major factors:

a.The first is the market-oriented liberal economic policies introduced in 1977, which placed greater emphasis on the export-led industries.

b.The second is the supportive measures taken by the government through the Board of Investment, such as duty free importation of industrial inputs, off-shore borrowing facilities, tax holidays or concessional taxation, etc. These measures together with the availability of labour- intensive industries such as garments.

c.The next important factor which contributed to the Sri Lankan apparel industry is the Multi Fibre arrangement ( MFA ).

AIM

The aim of this research is to discuss about the apparel industry in Sri Lanka and analyse the future challenges.

CHAPTER ONE

METHODOLOGY

STATEMENT OF THE PROBLEM:

1.The apparel sector had grown tremendously after introducing the open economy. Now it has become the leading export industry replacing the traditional tea and rubber. It is the most significant and dynamic contributor of Sri Lankan economy.

2.The major drawback in the Sri Lankan apparel industry is that it has not upgraded with latest technologies and mod