Sri Lankan Apparel Industry : Mas Holdings Post Mfa Essay examples

Best Essays
Sri Lankan Apparel Industry :

MAS Holdings Facing The Post MFA Era

Prepared By:
Sulatha Gengatharan
Schulich School of Business
York University, Canada
April 18, 2009
Executive Summary

With the phasing out of the Multi Fiber Agreement[i] in 2005, China & India have bombarded the market with low cost mass produced apparel. Exports from India and China have grown over 100% with the expiration of the MFA whilst other countries such Sri Lanka and Pakistan have seen a loss of market share in terms of volume traded. (Christoph, Alfons Hernández, & Daan, 2005). MAS Holdings Ltd (MAS) one of the largest apparel manufacturers is faced with this intense global competition and a constellation of other issues. The macro-economic
…show more content…
It is a member of the South Asian Association for Regional Corporation (SAARC) along with 8 other countries in the region. The capital of Sri Lanka is Sri Jayawardhanapura, Kotte. However, Colombo is the city that is more popularly known being the economic capital of the country. With its excellent geographic location, moderate weather and ample natural resources Sri Lanka is an excellent location for business investment if it wasn’t for a civil war which has kept business investors at bay. A macro analysis of Sri Lanka reveals the following major factors.

1 Political Landscape

Sri Lanka is a democratic republic with a parliamentary system. Sri Lanka adopted a parliamentary form of government upon achieving independence from the UK in 1948. According to the constitution, the executive president leads the government. At present the United People’s Freedom Alliance (UPFA) a coalition of eight political parties holds the majority in parliament. The incumbent president is a member of the Sri Lanka Freedom Party (SLFP), the largest membership of the coalition. The brutal civil war that erupted in 1983 between the Sinhala majority and the Tamil minority continues till this day in Sri Lanka. The cease fire agreement that was brokered by Norway in 2002 between the government and the Liberation Tiger of Tamil Elam (LTTE) separatists proved to be short lived when violence broke out in 2003. In 2006, the conflict between LTTE and Sri
Get Access