Sri Lanka Textiles 2003 - Global Business Reports

specialreport 

srilanka 

SRI LANKA 

A Prospect of Peace 

A Special Report by Arnaud Burtin and Özgür Ergüney 

Ateardrop ‘ 

from India – 

that’s the way Rudyard 

Kipling described Sri 

Lanka, or Ceylon as it 

was called in his time. 

This lush island won its independence 

from Britain in 1948 and, at the time, 

the newly created country of 20 

million inhabitants was described by 

the World Bank as having one of the 

most promising futures of all the 

countries of Asia. 

Unfortunately, although still 

remarkably beautiful and unspoilt, 

the country still remains among the 

poorest in the world. One of the 

factors underlying this inability to 

realise its potential has been the 

prolonged civil war between the 

government and the separatist Tamil 

Tigers, a conflict that has blighted 

the country for more than 20 years. 

These 20 years have not been kind 

to the country and, rather than 

marvel at the beaches, ancient 

temples and palaces that are features 

of the island, the world watched in 

horror at all the carnage and death. 

However, life has gone on and the 

garment sector has coped – some 

would say thrived – through such 

oppressive times, with annual 

growth rates of over 16% per annum 

for the past two decades. The 

industry has become the real engine 

of Sri Lanka’s economy, providing 

more than 300,000 jobs (30% of 

manufacturing employment) and 

almost half its foreign earnings. This, 

despite the fact that the country has 

had to continuously divert funds and 

resources to support the conflict, 

instead of improving infrastructure, 

education, health and other areas so 

necessary to support an emerging 

economy. 

The conflict aside, the macroeconomics 

of the island are pretty 

robust, with average annual growth 

rates of approximately 5.3% over the 

last five years, an unemployment rate 

24 

fashionbusinessinternational

specialreportsrilanka 

of less than 9% and steady inflation 

rates. The welfare policies of most of 

the post-independence governments 

have given Sri Lanka a very high 

literacy rate (95% for males and 90% 

for females), comparable to the most 

developed Western countries, and a 

health record enviable in the minds 

of other third-world countries. With 

English commonly spoken and an 

impressive passion for cricket, Sri 

Lanka has very strong links with UK – 

links that are exemplified by the fact 

that its apparel exports to the EU are 

almost completely focused on the 

UK. 

Before independence, Sri Lanka’s 

economy was centred on plantation 

crops (tea and rubber products). 

While agriculture remains important, 

the economy has since become 

considerably more diversified. The 

garment industry really started in the 

mid-‘70s, as the economy was 

liberalised and oriented towards 

export-led industries, growing thanks 

to the quota system and a very 

cheap labour force. Quotas allowed 

garment producers to stay focused 

on improving manufacturing skills, 

and also on strengthening their 

relationships with buyers. 

The industry started by manufacturing 

garments for the basic 

markets, such as discount stores, 

although now it is progressively 

going up-market, working for 

department stores and brands that 

are among the biggest players in the 

industry. Household names such as 

JC Penney in the USA, and Marks & 

Spencer in UK, are regular buyers 

from the island. 

But Sri Lanka has rapidly evolved 

from a simple contract manufacturing 

base and has attracted some 

of the major manufacturing players 

to set up operations there. 

Subsidiaries of global players such as 

Esquel and Fountain Set have 

established local subsidiaries, Polytex 

april-may 2003 

25


and Ocean Lanka, respectively. There 

has also been the establishment of a 

number of joint ventures with local 

operators such as Courtaulds Lanka 

or MAS Holding. 

Like many industries, the garment 

sector in Sri Lanka has evolved to 

become increasingly consolidated. In 

2001, 12% of local exporters 

generated 72% of the country’s 

export revenue in the garment sector. 

Having established themselves as the 

leading companies, with established 

production facilities and strong 

customer ties, these companies are 

now concentrating on moving 

upmarket. This has entailed 

developing more of the value-added 

services that high-end buyers expect 

from their suppliers. From the initial 

fabric design, through to the final 

delivery, these firms are becoming 

increasingly competent in providing 

the complete solution to their clients. 

The issues faced by the industry 

today are many and varied – issues 

that will ultimately have an adverse 

effect on growth. The lack of a local 

fabric-production base means that 

most producers can only provide a 

90-day lead time, as opposed to the 

60-day standard that many other 

Asian countries are able to work to. 

Other factors include low levels of 

productivity and, of course, the 

internal conflict that has scared many 

buyers who may have otherwise 

been tempted. 

Despite these handicaps, the 

growth of the sector has been 

constantly good to the extent that, if 

the country manages to solve these 

issues, its advantages will become 

even more compelling. Given the 

high literacy rate, developed social 

compliance regulations and low 

labour rates, the country has many 

attractions. 

After numerous attempts at peace, 

the current ceasefire and subsequent 

negotiations in Thailand have given 

the whole country the feeling that 

the end of the conflict is finally in 

sight. The garment sector is naturally 

anxious for current talks to continue 

and ultimately succeed in bringing 

lasting peace, which would in turn 

bring improvements in infrastructure, 

business climate, investment 

potential and, of course, living 

standards. 

Like many other countries, Sri 

Lanka is under pressure to put in 

place an attractive economic 

environment and an up-to-date 

industry before the complete liberalisation 

of the world apparel market in 

less than two years. Locally, many 

view 2005 as the death knell for 

small to medium-size enterprises, 

which only exist today through the 

protection that current quotas bring. 

The government and key-players are 

aware of the threat and have already 

decided to launch a common 

strategy for the next five years, to 

equip the industry and the whole 

society for the challenges of 2005. 

With the peace process bringing 

prosperity and stability to Sri Lanka, 

the country has one less major 

headache to worry about. 

Many, among the 25 top exporters, 

have already provided, or are on 

their way to providing, integrated 

services with a good level of 

compliance with production and 

social standards. At the same time, 

they have to maintain competitive 

prices and market their abilities to 

their customer base. They also want 

to have a more balanced market 

between the US and the European 

Union, and – by improving efficiency 

and the services expected by the 

more discerning buyers at the top 

end of the market – to continue 

moving up the value scale. 

The island of Ceylon has a long 

tradition of trading between Asia 

and Europe. Today’s Sri Lanka wants 

again to become a regional hub on 

the back of its thriving garment 

industry. Much of the groundwork 

has already been done, as the 

country is already established among 

some of the biggest buyers in the 

industry, despite its obvious 

handicaps. Now the country has 

identified the ways in which it must 

concentrate its resources, and how it 

must apply itself to meet the new 

challenges it will face in 2005. There 

is still every chance that Sri Lanka can 

become the shining Asian star that 

the World Bank once predicted – it 

may just be a matter of time. FBI 

26 


Peace Process 

Ushers in 

New Era 

The garment market is 

arguably the most globalised 

in the world and, because of 

political uncertainty, countryrisk 

rating has become a key element 

for major buyers and potential 

investors. 

Unfortunately, Sri Lanka has fallen 

into the higher-risk category for 

some time, due to the merciless civil 

war that has plagued the country for 

over two decades. The separatist 

group, LTTE, more commonly known 

as The Tamil Tigers, was fighting 

Colombo’s central power with the 

explicit aim of creating an 

independent state in the northern 

and north-eastern area of the island. 

For years, Sri Lanka has been 

headlining the world news with the 

latest Tamil Tiger terrorist attack, 

such as the daring raid on Colombo’s 

international airport in July 2001, 

which destroyed nearly half the 

national airline’s fleet. 

The conflict has its roots in 

colonial-era migration. The Tamil 

Tigers portray themselves as 

representatives of the local Tamil 

population. The Tamils were brought 

to Sri Lanka from southern India by 

the British, to pick the tea leaves, a 

career option that did not attract the 

indigenous Sinhalese. With 

independence, the by then 

substantial Tamil population became 

increasingly marginalised, as the 

Sinhalese shut them out of 

government and out of many aspects 

of everyday life. 

The situation came to the boil 

during the 1980s, when more 

militant elements in the Tamil 

population took matters into their 

own hands and began demanding a 

separate state within the island – a 

demand that ultimately led to the 

tragic armed conflict. 

“For Sri Lanka, the biggest 

problem is that very few people 

know about us… The main issue 

is to bring people here.” 

At the beginning of 2002, with a 

new government elected, talks with 

the LTTE were launched, achieving a 

ceasefire agreement that has proven 

to be more stable than previous 

attempts. As Professor G.L. Pieris, 

Minister of Enterprise, Development 

and Constitutional Affairs – in charge 

of the Peace process – summed up: 

“What is important is the conviction 

that the peace process itself is the 

only way. There is no other way. Both 

parties have established a rapport, 

they started the discussions and it is 

moving forward.” 

The latest peace initiative has 

certainly been a major boost for all 

april-may 2003 27

sectors of the country’s society. As Guhan Nanayakkara, 

managing director of Forbes, explains: “It is a major 

change in our daily lives and also in the way we do 

business. During the civil war, buyers were reluctant to 

come and visit us so we had to meet them in Hong Kong 

or Singapore.” 

Shirenda Lawrence, managing director of Courtaulds 

Lanka, a subsidiary of Courtaulds-Sara Lee, says: “Now the 

buyers are keen to come and visit us, marking a real 

improvement and a great opportunity for us.” All the key 

players are persuaded 

that, if the buyers “Those who come do not 

come, they will be 

leave disappointed!” 

convinced. As Ashroff 

Omar, chairman of MAST Lanka, the island’s second 

largest garment exporter, states: “Those who come do not 

leave disappointed!” 

Bringing more buyers is obviously the main expectation 

from the industry, but for a lot of people it is far more 

than that. Lyn Fernando, chairman of Creations and 

former chairman of the Sri Lanka Apparel Exporter 

Association, explained what can be expected: “The 

massive amounts of money that our government spent on 

the war effort will now be used to make the country 

more competitive and more attractive through improving 

the roads, railways, ports and other infrastructure crucial 

for local business.” This should have a considerable effect, 

bearing in mind that the government is reckoned to have 

spent approximately $750 million a year on the conflict. 

Both the government and the industry want to take the 

opportunity of peace in order to go further, by trying to 

get Free Trade Agreements (FTA) with the US and the 

European Union. Everyone agrees that FTAs and improved 

infrastructure would bring much more competitiveness to 

the industry, but to succeed, the existence of peace has to 

be known abroad. 

And that is certainly one of the main disadvantages of 

the country, as Omar admitted: “For Sri Lanka, the biggest 

problem is that very few people know about us… The 

main issue is to bring people here.” 

However, having met the challenge of peace, the task of 

attracting the buyer’s dollar and investor’s pound should 

be a little easier now. 

FBI 

28 



Planning 

for the 

New Order 

Many, rightly or wrongly, 

anticipate the approach 

of 2005 with fear and 

trepidation – something 

akin to judgement day. It seems, 

having interviewed textile executives 

across the globe, that only the 

Chinese could be excused for 

looking forward to this date! 

Sri Lanka is no exception, as it 

fears the phasing-out of a quota 

system that has so helped it to build 

a thriving industry – an industry that 

has formed the backbone of the 

local economy. Different surveys 

point out that at least 40% of the 

850 major companies active in the 

sector will shrink with the 

dismantling of the Multi-Fibre 

Agreement. 

In response to this perceived 

threat to such an important earner 

(half of the island’s exports 

originate in the textile sector), the 

public and private sectors have 

joined together to identify 

the industry’s failings and to 

formulate solutions in 

response. Part of the 

“Regaining Sri Lanka” 

programme, designed to 

stimulate a lack-lustre 

economy after 20 years of 

civil war, the resulting fiveyear 

strategic plan is the 

industry’s bible for future 

growth and prosperity. 

Thanks to the quota 

system, the local garment 

industry grew at an amazing rate 

over the past two decades. Exports 

grew from $468 million in 1989 to 

$2.34 billion in 2001. The protective 

blanket of the system allowed 

companies time to invest in and 

develop their businesses, with the 

result that many leading Western 

brands have become regular buyers. 

For example, the island’s responsible 

social and environmental standards 

have attracted the likes of Nike and 

Marks & Spencer. 

But the industry as a whole knows 

that it would be almost impossible to 

compete in the volume markets with 

much lower-cost countries like China 

and Bangladesh in a post-2005 

environment. Mahesh Amalean, 

chairman of MAS Holdings, explains 

the general mood in Sri Lanka: 

“Competing with them would take a 

lot of energy, and I would rather use 

our resources and energies to 

penetrate niche markets”. 

Lyn Fernando, chairman of 

Creations, goes further: “Competing 

with very cheap countries would 

mean giving up our level of social 

compliance. To avoid this dilemma, 

we have to go up-market.” 

The first issue that Sri Lanka must 

face, in order to achieve its up-market 

ambition, is what the “5-year strategic 

plan” calls backward integration. Sri 

Lanka currently imports over 40% of 

the raw materials needed by the 

garment industry. 

“Yarn and fabric producers were 


29


reluctant to settle here, because of 

the lack of local market,” explains 

Sam Speeza, managing director of 

Hayleys MGT, an Australian-based 

company. Fabrics and yarns are 

mainly imported from Hong Kong, 

China and India. The goal of the 

industry is to reduce the current 

lead-time from 90 days to the 60 

days increasingly demanded by 

buyers. 

There are two options to consider 

here. The first would be to establish 

local weaving mills, which would 

reduce lead times but would require 

massive amounts of capital and 

considerable development time. The 

few mills settled in Sri Lanka – 

including Ocean Lanka (owned by 

MAST Lanka), Hideramani Group and 

Fountain Set – are nevertheless very 

dynamic and have good-quality 

products. They are all planning 

massive expansions. 

Man-Kue Pow, director of Ocean 

Lanka, said: “We already have three 

plants and we want to set up 

enough facilities to triple our 

production capacity.” By 

combining the power of the 

country’s second and third largest 

exporters with the global might of 

the world’s leading yarn 

manufacturer, the idea is 

to draw upon 

expertise from both 

up- and 

downstream of 

the production 

process. 

The Sri 

Lankan 

Board of 

Investment 

(BOI) reckons 

that for this 

plan to work 

effectively, the 

country needs a 

minimum of two 

woven fabric mills 

to supply local 

demand sufficiently. 

The BOI wants to 

attract companies 

that are currently 

seeking for relocate 

mills established in 

expensive Europe or Northern Asia 

(for example in South Korea). 

The second track is a more 

pragmatic and easily realisable. 

Ashroff Omar, chairman of MAST 

Lanka, told us: “We are trying to 

create closer links with countries like 

India and Pakistan, who have 

relatively quick delivery times.” With 

the signing of a free-trade agreement 

with India and Pakistan, local 

suppliers can now rely on tariff-free 

fabrics. 

Amalean sums up the need for 

backward integration: “We have to 

both strengthen Sri Lanka’s fabric 

base and also look how to better use 

regional fabric. Giving Sri Lanka a 

fabric base should not be given a 

second priority, because flexibility 

and speed are paramount in our 

business.” With local companies 

already buying $1.5 billion annually, 

international companies would do 

well to work take notice. 

One of the underlying 

assumptions of the 

strategic plan is that 

the local industry 

must move away 

from the lower-end 

market and look to 

engage more 

demanding higherend 

clients. 

Currently, 

around 40% 

of Sri 

Lankan 

production 

goes to 

discount stores 

and between 

50% and 60% to 

department 

stores, with only 

10% to speciality 

stores and the 

brands. The goal is 

to increase this 

final figure to at 

least 30% within the 

five years. 

Like many other 

garment manufacturers 

around the 

world, the local 

industry has also been 

encouraged to provide increasingly 

sophisticated services to its 

customers. MAST Lanka’s Omar, who 

is part of the ‘Regaining Sri Lanka’ 

team, reckons that: “We are trying to 

educate the industry about following 

fabric fashions and trends. Providing 

a complete solution is what we have 

to emphasise.” 

Product development and sampling 

are common services among the top 

apparel producers. Not surprisingly, 

companies such as Hoodvian and M. 

Samson Silva already have their 

sights aimed higher, by employing 

their own design teams. Indika Silva, 

of M. Samson Silva, explains: “Our 

strategy is to provide costumers with 

a global solution.” Amalean, of MAS 

Holdings, underlines the strategy: 

“We have to provide a total service 

to the customer, which involves 

being active in the entire supply 

chain to ensure that we get the 

‘freshest’ products on to the 

shelves.” 

The phasing-out of quotas is an 

issue for any garment producing 

country, but Sri Lanka is perfectly 

aware of the threat hovering over it. 

Instead of competition among 

companies, the garment sector 

appears united in facing the 

challenges to come, with strong 

support from the government. 

Important goals, such as achieving 

peace and solving the lack of 

backward linkages, are crucial if the 

industry is to maintain its ability to 

provide Sri Lanka with external 

earnings and massive employment. 

Coupled to these investments at 

home, the country must look to – 

and is currently in the process of – 

extending the number of Free Trade 

Agreements (FTA) with key 

destination markets, mainly in 

Europe. 

By providing the answers to all the 

questions that hang over its future, 

the industry aims to grow its current 

export figure to $4.5 billion by 

2007, which is ambitious but 

realistic, if Sri Lanka can inform the 

world about its specific qualities – 

advantages that no other country in 

the region has been able to 

develop…so far. 

FBI 

30 fashionbusinessinternational

Mainettech ad


The Power of 

Global Thinking 

Although only 25 years old, the 

Sri Lankan garment industry 

has spawned an impressive 

accessory industry. First among 

these is global player Mainetti, one of the 

largest garment-hanger suppliers in the 

world, with operations in 25 countries. 

The growth of Mainettech, the 

company’s local production facility, 

exemplifies how the presence of 

accessories suppliers is crucial for apparel 

manufacturers. But it is the backing of a 

global company that has allowed this 

demand to be converted into the largest 

range of products and services that the 

industry could possibly expect. 

Established 10 years ago, when the 

garment sector was still in its infancy, 

Mainettech is today the island’s leading 

supplier of hangers and, in turn, Sri 

Lanka is now the company’s strategic 

hub for the Indian subcontinent. 

Mainetti’s success in developing a hub is 

a lesson that many in the local industry 

are looking to replicate. 

Jeyam Perumal, the company’s regional 

director, explains the philosophy of the 

group: “A Mainetti hanger produced in 

Sri Lanka is absolutely identical to 

another Mainetti hanger produced 

elsewhere in the world.” With garment 

manufacturers expected to supply their 

garments quickly, flexibly and at a 

constant quality, so the hanger 

manufacturer is expected to work under 

similar criteria. “Our systems and 

facilities have evolved to ensure that we 

become an essential part of the supply 

chain. Most importantly, our success 

relies on the fact that we think globally, 

but act locally.” 

“Our success relies on the fact 

that we think globally, 

but act locally.” 

Apparel manufacturers expect a lot 

from a hanger supplier, which has to be 

flexible, to insure a constant quality of 

products and delivery. Perumal explains 

the company’s approach to fulfilling 

these requirements: “We have evolved 

systems and facilities to ensure that we 

become an essential part in the supply 

chain. It is a partnership approach that 

defines us.” 

With a catalogue of over 350 hanger 

models, it is important for the company 

to be able to provide the type of hanger 

the buyer requires. Perumal goes on: “To 

achieve this we depend on technically 

advanced equipment, produced within 

the group by Mainetti Tecnologie. We 

design, develop and manufacture 

leading-edge robotic systems and 

automated equipment for the 

production of high-quality garment 

hangers at the lowest possible cost. 

Perumal explains his recipe for success 

in this business: “It is very important to 

think globally and act locally, to be able 

to have the quickest response for this 

just-in-time industry. Our mission is to 

support our costumers in their sourcing 

operations.” 

As people such as Perumal work 

increasingly closely with the local 

market, their ethos and mindset will 

surely influence others, especially the 

more dynamic, middle-ranking players 

who do not have the luxury of studying 

international methods on extended 

international trips. 

The strong support that Mainetti has 

shown its local company has helped 

Mainettech become the first local hanger 

producer to obtain the ISO 9002 certification, 

in 1998. By bringing international 

standards and internationally trained and 

experienced managers to the local 

market, manufacturers such as Mainetti 

are helping evolve the local market. In its 

continuing quest to respond to clients’ 

ever-changing needs, Mainetti lives by 

the slogan: “More than just a hanger.” 

Maybe local garment producers will 

learn from the example and adopt a 

similar slogan: “More than just a 

garment manufacturer…” FBI 

32 



Social Compliance 

Gives Sri Lanka an Edge 

In a world of borderless trade, the 

theory of comparative advantage 

states that when country A is able 

to produce and export a specific 

product for less than country B, then 

country A has a comparative 

advantage in that product. 

Nowhere has this theory been more 

ruthlessly applied than in the world 

of textiles, where buyers from 

around the world continuously seek 

to source increasingly cheaper 

textiles from countries that have a 

comparative advantage in producing 

textiles. 

Unfortunately, this theory contains 

a major flaw. It does not allow for 

equality in standards – not the 

standards of the final product, but of 

the environment and social welfare 

in the place where the garments are 

produced. 

All over the world, garment 

manufacturers are struggling to 

provide the best quality products at 

the lowest prices within the shortest 

space of time. But is this enough to 

get orders? The whole garmentmanufacturing 

sector in Sri Lanka is 

convinced that, to be successful, it 

has to go further. 

And the area where Sri Lanka is 

proudly head-and-shoulders above its 

competitors within the region is its 

compliance with international 

standards in terms of labour laws, 

environment protection and respect 

for human rights. 

In recent years, mass retailers and 

the biggest brands have been under 

huge pressure from consumers 

groups and the ever-vocal lobbies in 

the Western countries, forcing them 

to source from countries and 

companies that comply with international 

labour standards and human 

‘Sri Lanka has a tremendous 

advantage, especially in 

comparison with its neighbours’ 

rights. Damning reports on such 

high-profile retailers as Nike and 

Reebok have forced both companies 

to search for more ‘suitable’ 

suppliers, whilst also spending 

millions on building their image as 

caring employers. 

And in terms of standards 

compliance, Sri Lanka has a 

tremendous advantage, especially in 

comparison with its neighbours. 

Firstly, owners throughout the 

country proudly point out that there 

is no child labour, nor sweatshops, 

nor forced labour. Wage rates, 

overtime and workers’ holidays are 

strictly covered by law and, as 

Channa Palansuriya, CEO of Orit, 

confirms: “Big buyers actually refuse 

to work with producers that are not 


33


socially and ethically compliant. As 

these issues become increasingly 

important, Sri Lanka has a real 

competitive advantage over other 

regional players.” 

Even though low, production costs 

in Sri Lanka are not the cheapest in 

the region. It has therefore been 

necessary to develop other 

advantages. Rami Wiersch, CEO of 

Hoodvian Ltd, comments: “It will be 

an even more important subject in 

the years to come because social 

compliance is part of the WTO. For 

an equal price, buyers are 

definitely choosing the 

company with the highest 

level of compliance.” 

But it does not just make 

sense from the buyer’s 

perspective. There is also an 

advantage for the industry as 

a whole. Gihan Nanayakkara, 

CEO of Forbes, explains: “If 

you are not compliant in 

today’s business, there’s no 

point in marketing yourself 

and no way to get orders.” 

Big buyers are increasingly 

sensitive to the way workers 

are treated in the garment 

factories where they place 

their orders, and it is an issue 

that will become even more 

important. Rizvi Farouk, 

chairman of the Sri Lanka 

Buyers Association, said: “I 

think that, if we can adapt a 

higher compliance policy like in the 

US or in Europe, efficiency will 

dramatically improve and it will allow 

the hard-working people to earn 

more.” 

It does not take rocket science to 

realise that, by improving working 

conditions, companies can look 

forward to gains in efficiency and 

productivity, not to mention reduced 

absenteeism and employee turnover. 

Shirenda Lawrence, managing 

director of Courtaulds Lanka, which 

has an impressively modern factory, 

illustrates this: “As soon as we 

started providing meals as well as 

transportation from home, 

absenteeism fell immediately and 

dramatically.” 

If the whole industry seems to be 

fully aware of the necessity of 

compliance, its leaders also point out 

the need to update labour laws to 

maintain the industry’s edge over the 

competition. Farouk, from the Sri 

Lanka Buyers Association, explains: 

“Sri Lanka has labour laws from the 

‘60s, which are not practical for 

today’s business. Labour laws are 

one of the first things an investor 

needs to be comfortable with. Ours 

are slightly outdated and could be 

more appealing, to attract foreign 

investors.” 

R.E.V. Casie Chetty, chairman of the 

Sri Lanka Apparel Exporters 

Association, goes into more detail: 

“The government has to step 

forward to amend obsolete laws, 

particularly with regard to the 

termination of employment and 

overtime limitations, to make the 

industry globally more competitive.” 

In addition to social standards, 

environmental protection appears as 

a major concern. Indika Silva, CEO of 

M. Samson Silva, says: “As a Buddhist 

country, environment protection is 

considered as natural behaviour.” 

That’s why water treatment plants 

are very common within Sri Lankan 

factories. 

34 



Whilst the more forward-thinking producers of the 

region have realised that these standards are de rigueur if 

they are to attract the best and most reliable buyers, Sri 

Lanka has in fact proven herself capable of applying the 

theories right across the board. Although considered 

outdated by the locals, the current labour laws are years 

ahead of some countries who would not wish to be 

advertised. Equally impressive is the level of openness and 

support for such initiatives, a far cry from a country such 

as Indonesia, where players can only complain about the 

restrictions placed on them by labour laws. 

At the end of the day, it is not always the price level 

that determines a country’s comparative advantage, but 

also its willingness to comply with the peripheral – or 

should it be central? – needs and requirements of their 

destination markets. 

FBI 

USEFUL CONTACTS IN SRI LANKA 


35

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