In 1977 the country's United National Party government introduced an open-economy policy, which led to the creation in 1978 of the country's first Free-trade zone (FTZ), currently known as an Export Processing Zone, in Katunayake. Located approximately northeast of Colombo, adjacent to the Bandaranaike International Airport, the Katunayake KTZ covers and is the largest of the country's eight FTZs. It is governed by the Sri Lankan Board of Investment. In order to attract foreign investment the government provides a number of incentives, including duty-free import and exports, preferential tax, double taxation relief and up to 100% foreign ownership. The Katunayake FTZ houses over one hundred multinational industries, predominantly in the garment and clothing industry. From its inception the FTZ the workforce was predominantly young female migrants from rural villages, mainly from economically and socially marginalised groups.
