Abstract:
I-Iandloom Industry in Sri Lanka has a long history. In the modem form,
this industry was commenced from the beginning of the 20th century, /irst
for developing local industries to diversify the economy. Then, it was
recognized as a home industry with capabilities of employment generation
with less capital to be invested. Whenever, international trade is hampered
this industry showed a rapid expansion. As such, during the Second World
War period and when following restricted trade policies the handloom
industry flourished.
However, after following liberalized trade policies, handloom industry
started facing a severe completion, and as a result, it has reduced to a
greater extent. However, having realized the importance ofjob generation
ability with bearing a minimum amount of initial capital and thereby
reducing rural poverty, successive governments throughout the liberalized
trade era, took a number of steps to revitalize this industry. Even then, it
could not develop at least to a level it had before introducing liberalized
trade policies. Consequently, this study aims at examining why it has been
failed to develop this industry, especially in an environment offollowing
liberalized economic policies.
This study uses the casc study method as its research mcthodology by
selecting a village which has been famous for producing hand loom
products for years. Handloom production in the selected village is carried
out by two organizations, Cooperative society and a programmed
sponsored by two private companies. As such, study took a nature of a
competitive study between these two organizations. Data was collected
administrating a questionnaire including a major question based on Likert
Scale. The evidence saw collected were used to test the hypotheses made
for the study. Study concludes that even under the liberalized trade
policies, industry could not obtain raw materials uninterruptedly,
hand loom products arc facing a severe competition, and weavers are
facing difficulties in obtaining training facilities, funds, getting their
products sold and also the problem of not getting the services efliciently
from the government and other agencies set up to promote this industry.
The study concludes that this industry should be organized taking some
experience from the private sector competitive business.
