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The Ending of the Multi-Fibre Agreement and Innovation in the Sri Lankan Textile and Clothing Industry

Author

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  • Janaka Wijayasiri
  • Jagath Dissanayake

Abstract

This case study analyses the effect that the end of the Multi-Fibre Agreement (MFA) has had on innovation in the Sri Lankan textile and clothing sector. The ending of the quota system under the MFA led to an increase in the US and EU markets which has motivated a large number of innovations in the Sri Lankan textile and clothing sector. Some large companies have become a total services provider, while others are trying to establish their own brands. Product innovations with foreign partners, process innovations such as introduction of CAD/CAM, and various marketing and organisational innovations have been implemented. Keywords: innovation, textiles and clothing, garment, Sri Lanka, Multi-Fibre Agreement, MFA, competition , CSR, Corporate Social Responsibility, marketing, brands, fair-trade, outsourcing, FDI, joint-ventures

Suggested Citation

  • Janaka Wijayasiri & Jagath Dissanayake, 2009. "The Ending of the Multi-Fibre Agreement and Innovation in the Sri Lankan Textile and Clothing Industry," OECD Journal: General Papers, OECD Publishing, vol. 2008(4), pages 157-188.
    • Handle: RePEc:oec:packab:5ksm2s8mzd6k
    DOI: 10.1787/gen_papers-v2008-art27-en
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