Diversification drives Sri Lanka’s record export performance
The Morning: Sri Lanka’s unprecedented export earnings of $ 8.3 billion in the first six months of the year are a result of efforts made to diversify export products and export destinations, Export Development Board (EDB) Chairperson Mangala Wijesinghe said in a video published by the Department of Government Information yesterday (29).
“The key reason for exports to grow within this time period is the efforts exporters have made by facing and tackling challenges in the international markets. This is also the result of the efforts made in diversifying export products and the diversifying of export destinations, which have been key to the increase in exports,” Wijesinghe said in a video published on the agency’s Facebook page.
“This year, our main target is to reach $ 18 billion in earnings, and in the first six months, we have earned $ 8,337 million. In the next six months, we await to reach the target.”
Sri Lanka’s total export earnings for the month of June outpaced the performance in June last year by 8.73%, earning $ 1,460.34 million, the Export Development Board (EDB) monthly data bulletin shows.
Amidst global markets facing volatility in sentiment due to the looming tariffs that are to be levelled by the US in August, the volume of tea exports increased by 11.02% in June compared to the same month in 2024.
Further, tea exports to Iraq and Libya posted sizable increases of 82.99% and 172.38%, respectively. Meanwhile, Iran, which shares a tea-for-oil agreement with Sri Lanka, saw a decrease in Sri Lankan tea exports by 55.31% in June, compared to the same month in 2024.
Further, despite the uncertainty in global trade, Sri Lanka’s apparel exports as a whole grew by 5.2% in June compared to the same month last year, with a 23.1% growth recorded in the EU and a 20.4% growth in the UK markets.
OSL take:
Sri Lanka’s export industry is one of the fastest growing industries in the country with the potential of further growth and expansion. The many trade agreements and trade concessions enjoyed by Sri Lanka with many foreign countries have helped boost Sri Lanka’s export industry along with the incentives offered by the local authorities to businesses in the industry. The growth, profits and expansion of businesses in Sri Lanka’s export industry indicates the increasing business potential of the industry. With Sri Lankan exporters looking at adding more value to their export products while also looking at further diversifying the export product portfolios to meet the evolving requirements of the foreign markets, there are additional business/investment opportunities emerging in Sri Lanka’s export industry. All these factors indicate the expanding business/investment opportunities in the export industry and their lucrative nature. Given the steadily increasing revenue recorded by Sri Lanka’s export industry, foreign businesses/investors in the industry will be guaranteed profits. Also, foreign businesses could look at setting up bases in Sri Lanka to manufacture and export goods to foreign markets using the trade benefits enjoyed by Sri Lanka with many foreign countries.
| Article Code : | VBS/AT/20250811/Z_2 |