The garment industry in Sri Lanka remains the largest gross export earner, accounting for a significant share of total manufacturing employment in the country. With the expected phase out of quotas under the Multi Fibre Agreement in 2005, the industry will face significant challenges from an increasingly competitive international market. The paper evaluates the performance of the Sri Lankan garment industry to identify the threats and opportunities that lie ahead as the MFA is progressively phased out over the coming years.
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