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Not many pluses; Sri Lanka.

A brutal military campaign threatens Sri Lanka's exporters

AT A lingerie factory in Pannala, in Sri Lanka's Western Province, lines of women in red work-coats, red headscarves and face-masks are stitching knickers. These garments, bound for British high streets, represent one of Sri Lanka's strengths: an innovative garment industry, which accounts for 67% of total industrial output and the equivalent of 10% of GDP. The factory's owner, MAS Holdings, Sri Lanka's biggest garment-maker, employs 45,000 Sri Lankans, and had revenues of $700m last year.

Seen from here, Sri Lanka's big weakness--the 25-year war between the Liberation Tigers of Tamil Eelam (LTTE) and the ...

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