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Sri Lanka's textile and clothing industry plays a vital role in the country's economy. The industry is a major source of employment and a major contributor to Sri Lanka's gross domestic product (GDP), exports and foreign exchange earnings. The clothing industry in Sri Lanka has seen rapid expansion, and investments have been made in sustainability, innovation and creativity in design. The industry is committed to environmentally friendly manufacturing and waste management methods and this commitment has provided it with a significant competitive advantage. Also, the industry comprises integrated large-scale operations which manufacture a wide range of products. As a result, Sri Lanka has gained an international reputation for being a reliable supplier of competitively priced high quality products, and strong and enduring links have been established with Western brands and retailers. However, the textile industry in Sri Lanka does not have the capacity to meet the domestic clothing industry's demand for yarns and fabrics. Sri Lanka's spinning and weaving sectors are particularly weak and, as a result, the clothing industry is dependent on imports for its inputs of yarns and woven fabrics. This report looks at the development of the textile and clothing industry in Sri Lanka, its size and structure, and fibre, textile and clothing production and consumption. The report also features: a geographical, political and economic profile; a detailed look at the country's imports and exports of textiles and clothing; the domestic market; a review of government policies and investment incentives; foreign direct investment (FDI) in the textile and clothing industry; an examination of the industry's strengths, weaknesses, opportunities and threats (SWOT); and an analysis of Sri Lanka's infrastructure and human resources and how these affect the textile and clothing industry.

Table Of Contents

Prospects for the textile and clothing industry in Sri Lanka, September 2015
List of contents
SUMMARY
IMPORTANCE OF THE TEXTILE AND CLOTHING INDUSTRY TO
THE ECONOMY OF SRI LANKA
DEVELOPMENT OF THE TEXTILE AND CLOTHING INDUSTRY IN
SRI LANKA
SRI LANKA: GEOGRAPHICAL, POLITICAL AND ECONOMIC
PROFILE
Geographical profile
Political profile
Economic profile
SRI LANKA: INFRASTRUCTURE
Transportation
Roads
Railways
Airports and airlines
Ports
Telecommunications
SRI LANKA: HUMAN RESOURCES
SIZE AND STRUCTURE OF THE TEXTILE AND CLOTHING
INDUSTRY IN SRI LANKA
Textiles
Clothing
SRI LANKA: TEXTILE AND CLOTHING PRODUCTION AND
CONSUMPTION
SRI LANKA: TEXTILE AND CLOTHING EXPORTS
SRI LANKA: TEXTILE AND CLOTHING IMPORTS
SRI LANKA: FOREIGN DIRECT INVESTMENT IN THE TEXTILE
AND CLOTHING INDUSTRY
Prospects for the textile and clothing industry in Sri Lanka
TEXTILES AND CLOTHING IN SRI LANKA: GOVERNMENT
POLICIES AND INVESTMENT INCENTIVES
Government policies
Investment incentives
TEXTILES AND CLOTHING IN SRI LANKA: STRENGTHS,
WEAKNESSES, OPPORTUNITIES AND THREATS
Strengths
Weaknesses
Opportunities
Threats
List of tables
Table 1: Sri Lanka: political and economic profile, 2015
Table 2: Sri Lanka: economic indicators, 2012-14
Table 3: Sri Lanka: fibre consumption, 2009-13
Table 4: Sri Lanka: yarn and fabric production, 2009-13
Table 5: Sri Lanka: textile and clothing exports, 2009-14
Table 6: Sri Lanka: textile and clothing exports by leading destination, 2009-14
Table 7: Sri Lanka: clothing exports by leading destination, 2009-14
Table 8: Sri Lanka: textile and clothing imports, 2009-14
Table 9: Sri Lanka: imports of fibre, yarn and fabric in volume terms, 2009-13
Table 10: Sri Lanka: textile and clothing imports by leading supplier, 2009-14
Table 11: Sri Lanka: imports of textile and clothing machinery, 2009-14
Table 12: Sri Lanka: foreign direct investment (FDI) in the textile and clothing industry,
2009-14

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