Sri Lanka's textile and apparel manufacturers are now gearing to meet the challenges of the effects of the year 2005. The quotas are the life blood of the developing countries like Sri Lanka. By year 2005 all the quotas will be phased out, which is going to trigger a free-for-all to sell apparel to U.S.A. and EU markets.

For Sri Lanka's manufacturers the way to survive is to build long-term relationships with big global brand retailers. To deal with the competition Sri Lanka's apparel companies are trying to move up the quality ladder. "We can't be low-end producers anymore," says the Chairman of the Sri Lanka's Apparel Manufacturers Association. So Sri Lanka's apparel manufacturers are focusing an better quality, so that retailers will want to stick with them. They are working to make themselves more valuable to retailers by actually designing clothes.

In the past, retailers designed garments and apparel manufacturers had to show retailers that they could make them. Now apparel manufacturers have to design more things themselves, get the fabrics, and then show retailers that they can get the whole package from manufacturers. "We have to become more than just tailors to survive," the chairman added.