Industrialization Experience in Sri Lanka
Abstract
On the whole, this paper gives an analysis on the impact of globalization on Sri Lanka and further examines the industrialization experience in Sri Lanka following the market-oriented policy transformation instigated in 1977, while emphasizing on the establishment of trade Policies including Foreign-Direct-Investments (FDI). Moreover, this paper recognizes that policy alterations have positively played a key role in converting a primary-product-exporting economy to an economy which manufactures & exports value-added goods.
The paper discusses different phases of Government policy towards international trade & private investment in Sri Lanka since the independence in 1948, with the objective of emphasizing the positive impact of globalization on the Textile and Apparel (T&A) industry in Sri Lanka while acknowledging negative impacts and provide strategic alternatives to endure the height of globalization in the post-MFA/ATC era.
Furthermore, the paper acknowledges the dependence of the industry on trade flows instigated by globalization, through the identification of 46 per cent dominance of T&A exports in total exports in 2009. Capital flows and technological transfers provide another linkage between the said industry and globalization.
1.0 Introduction
As a member of the international trading community, Sri Lanka has been on the focal point of Globalization from the early days. Historical evidence suggests that, in the 15th century Arab traders made Colombo, the hub of their trading activities in the Indian Ocean. A century later, the Portuguese secured Colombo (1505-1658) and improved its significance as the most popular emporium in the East. Consequently, the Dutch came in to reign and further enhancements of Colombo’s significance were seen during the period (1658-1796). However, Colombo received the greatest impulsion for its rise to prominence in the Indian Ocean region under the British (1815-1948) with the extension of their dominion over the
On the whole, this paper gives an analysis on the impact of globalization on Sri Lanka and further examines the industrialization experience in Sri Lanka following the market-oriented policy transformation instigated in 1977, while emphasizing on the establishment of trade Policies including Foreign-Direct-Investments (FDI). Moreover, this paper recognizes that policy alterations have positively played a key role in converting a primary-product-exporting economy to an economy which manufactures & exports value-added goods.
The paper discusses different phases of Government policy towards international trade & private investment in Sri Lanka since the independence in 1948, with the objective of emphasizing the positive impact of globalization on the Textile and Apparel (T&A) industry in Sri Lanka while acknowledging negative impacts and provide strategic alternatives to endure the height of globalization in the post-MFA/ATC era.
Furthermore, the paper acknowledges the dependence of the industry on trade flows instigated by globalization, through the identification of 46 per cent dominance of T&A exports in total exports in 2009. Capital flows and technological transfers provide another linkage between the said industry and globalization.
1.0 Introduction
As a member of the international trading community, Sri Lanka has been on the focal point of Globalization from the early days. Historical evidence suggests that, in the 15th century Arab traders made Colombo, the hub of their trading activities in the Indian Ocean. A century later, the Portuguese secured Colombo (1505-1658) and improved its significance as the most popular emporium in the East. Consequently, the Dutch came in to reign and further enhancements of Colombo’s significance were seen during the period (1658-1796). However, Colombo received the greatest impulsion for its rise to prominence in the Indian Ocean region under the British (1815-1948) with the extension of their dominion over the