Garment factories in the island run on less than 25 per cent of their capacity as a result of the economic crisis.
This came to light at a meeting of the industry stakeholders convened by a sectoral oversight committee.
Industry representatives noted that many factories were being closed or relocated in other countries.
They cannot compete in the international market due to increases in the prices of raw materials, tariff and electricity charges, and do not receive adequate orders.
The garments industry provides direct employment to 350,000 persons and another 300,000 jobs indirectly.
Matters pertaining to foreign exchange and regional legal issues faced by the industry too, came under discussion.
