Export processing zones in Sri Lanka: a cost - benefit appraisal

Authors

Kankesu Jayanthakumaran, University of PeradeniyaFollow
John Weiss, University of Bradford

RIS ID

103762

Publication Details

Jayanthakumaran, K. & Weiss, J. (1997). Export processing zones in Sri Lanka: a cost - benefit appraisal. Journal of International Development, 9 (5), 727-737.

Abstract

Like many countries, Sri Lanka has used Export Processing Zones as a means of promoting manufactured exports. This article uses a cost-benefit approach to estimate the returns to the national economy from the main zones. Overall, the zones are found to be economically efficient with an economic rate of return of 23 per cent. The zones are dominated by textile and clothing firms, however, and returns in other sectors are considerably lower. Unlike zones elsewhere, profits to local investors are a significant part of national benefits.