Abstract:
Sri Lanka has several Free Trade Zones (FTZ) which contain different manufacturing operations including garments. According to the World Bank, a FTZ is a "fenced-in industrial estate specializing in manufacturing for export and offering their resident firms free-trade conditions and a liberal regulatory environment” (World Bank, 1992).
The economy of Sri Lanka depends heavily on the garment manufacturing industry and mainly contributes to the national income, employability rate, foreign exchange, and direct investments, etc. Further as indirect sources, they contribute to maintaining the value of Rupee, Infrastructure which is developed through these Free Trade Zone. According to the Sri Lanka Export Development Board, in 2019 apparel exports value is at US$2,098.28 million. The major markets are the United States, United Kingdom, Italy, Germany, Belgium, Netherland, Canada, India, France, and Australia. Sri Lanka exports garments such as casual wear, fashion wear, intimate wear, swim wear, sportswear, uniform, and workwear, and children's wear. Further in Sri Lanka there are mainly 3 FTZs named Katunayake, Biyagama, and Koggala. Beyond these, there are 3 other mini export processing zones in Mirigama, Malwatte, and Wathupitiwala.
