Your newspaper of the August 27, carried a Reuters report from Singapore under the caption ‘Multi Fibre Agreement would have a devastating impact on Sri Lanka apparel factories’. The report stated that with the phasing out of quotas under the Multi Fibre Agreement at the end of December 2004, many countries which are in apparel exports, would be affected in different ways.

China and India are expected to benefit from the abolition of quotas, while Cambodia, Philippines and Sri Lanka are expected to face difficulties. A similar report appeared in the ‘Far Eastern Economic Review’ about a month ago.

In this context, the announcement of Professor G. L. Peiris recently, that as part of the fast track economic development programme of the government, special quotas will be issued to garment factories located in difficult areas of the country, is beyond comprehension. Eighteen factories in different parts of the country are said to benefit under the scheme.

The question to be asked is: with the quotas to be phased out in 16 months, and the garments industry entering an uncharted sea, is it feasible to expect this programme to be sustained for long? It looks more like a fast track programme aimed at the forthcoming Provincial Council elections!