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8. Since the introduction of open economic policies in the post 77 era, the total out look changed in the Textile Industry and today the State has virtually no stake in the Textile manufacturing sector (however, with the introduction of the Public Enterprises Rehabilitation Act No. 29 of 1996 - *two mills come under Government control). The Garment Industry was limited to a few shirt manufacturers prior to the early 70s. The Mid 70s showed an increase in activity in the garment trade. With the establishment of the Export Promotion Zone in Katunayake under the former Greater Colombo Economic Commission(GCEC), an up-surge in the garment sector was seen in the 80s which subsequently became the highest gross foreign exchange earner surpassing the traditional exports like tea, rubber and coconut.
Table I a - Exports - Comparison of Industrial/Agricultural Exports
| 1995 | 1996 | 1997 JAN - MAR | |
| TOTAL EXPORTS US$ M | 4103 | 3807 | 1005 |
| INDUSTRIAL EXPORTS US$ M | 2870 | 3013 | 736 |
| TEXTILES & GARMENTS US$ | 1854 | 1906 | 485 |
| AGRICULTURAL EXPORTS US$ M | 829 | 963 | 237 |
*One mill was re-divested in June '97.
Table 1b - TC Share in National Export
| YEAR | TEXTILES & GARMENTS AS % OF | |
| NATIONAL EXPORTS | INDUSTRIAL EXPORTS | |
| 1990 | 34.77 | 64.15 |
| 1991 | 41.33 | 66.95 |
| 1992 | 49.73 | 69.17 |
| 1993 | 49.32 | 67.08 |
| 1994 | 48.24 | 64.55 |
| 1995 | 48.66 | 64 61 |
| 1996 | 46.37 | 63.15 |
Growth of the Clothing Sector
9. Growth of the garment industry from Rs.68 M. export value in 1976 to Rs. 105 billion in 1996 is phenomenal and unmatched in the history of the entire industrial sector in Sri Lanka. Further more, continuously over the last few years the Garment and Textile sector maintained its leading position while sustaining a steady growth.
Table 2
The Growth of Sri Lanka Apparel Export
| YEAR | VALUE RS. MN.* | VALUE US$ MN. | GROWTH % VALUE US$* |
| 1976 | 68.91 | 7.78 | 0.00 |
| 1977 | 139.79 | 9.89 | 27.17 |
| 1978 | 457.47 | 30.67 | 210.11 |
| 1979 | 1103.49 | 71.50 | 132.96 |
| 1980 | 1808.43 | 100.47 | 40.61 |
| 1981 | 2956.78 | 143.88 | 43.20 |
| 1982 | 3444.86 | 161.53 | 12.26 |
| 1983 | 4635.57 | 185.42 | 14.74 |
| 1984 | 7358.20 | 279.99 | 51.00 |
| 1985 | 7700.76 | 283.00 | 1.07 |
| 1986 | 9254.11 | 330.32 | 16.72 |
| 1987 | 12383.36 | 419.49 | 26.99 |
| 1988 | 13581.03 | 426.94 | 1.77 |
| 1989 | 16893.07 | 468.60 | 9.75 |
| 1990 | 24932.83 | 623.32 | 33.01 |
| 1991 | 31626.72 | 764.48 | 22.64 |
| 1992 | 49176.02 | 1121.91 | 46.75 |
| 1993 | 62349.12 | 1292.20 | 15.17 |
| 1994 | 68944.80 | 1395.22 | 7.97 |
| 1995 | 84828.91 | 1655.19 | 18.63 |
| 1996 | 93806.00 | 1675.11 | 1.20 |
Source - Ministry of Industrial Development (MID) - Textile Division - (1995 Statistics Book)
10. The development of the garment industry did not occur entirely by design, but by to a considerable extent by "accident". It is the quota system under Multi Fibre Arrangement (MFA) that worked as a catalyst in the industry, attracting foreign investor interest and not a planned approach by the Sri Lankan policymakers, except for the granting of tax incentives.
Economic development is an opportunity associated with the 'opportunity cost'. This is an inevitable price one has to pay. But the question is, should it be solely borne by the employees, or can it be distributed amongst "others", who perhaps, are better equipped to absorb such costs?
11. The creation of the EPZ and subsequent expansion of export oriented Textile/Garment factories opened up new economic activities, generating a large amount of employment opportunities. The number of employees in the Textile, Garment and allied industries exceeds 300,000 and is second only to the plantation sector. Amongst the labour force, female employees represent to 85% of the total work force. This requires recognition of certain specific conditions i.e. maternity.
Table 3 -
Employment in the T/C Sector
3.a Clothing Sector
| Factory Type | Males | Females | Total |
| Serviced by MID (MN) | 6563 | 45120 | 51683 |
| BOI Normal (BN) | 11703 | 61403 | 73106 |
| BOI Expansion (BE) | 9818 | 68304 | 78122 |
| BOI Zone (BZ) | 7669 | 40957 | 48626 |
| Total | 35753 | 215784 | 251537 |
Table 3b - Textile Sector
| Factory Type | Male | Female | Total |
| Spinning | 2083 | 1273 | 3356 |
| Weaving | 6223 | 13154 | 19377 |
| Knitting | 1185 | 4997 | 6182 |
| Finishing | 1522 | 1223 | 2745 |
| Integrated | 6950 | 2136 | 9086 |
| Handlooms | *20000 | ||
| Total | 17963 | 22783 | 60746 |
Source-MID - Textile Division 1995 Statistical Report
