EDB targets $ 45 billion export revenue by 2030 amid economic overhaul
Daily FT: Sri Lanka has set its sights on a transformative export agenda with Export Development Board (EDB) Chairman Mangala Wijesinghe unveiling plans to achieve $ 45 billion in export revenue within the next five years.
The target includes a significant boost in merchandise exports, services and tourism supported by an annual growth of 15%, a marked increase from the current 4%.
Speaking at a media briefing ahead of the ‘Voyage Sri Lanka: Sailing to the Blue Economy’ conference set for 26 November in Colombo, Wijesinghe emphasised the Government’s focus on unlocking the country’s export potential through strategic initiatives and sectoral reforms.
Outlining the vision, Wijesinghe projected a steep rise in annual merchandise exports from the current $ 12 billion to $ 22 billion by 2030. Service exports, including IT/BPM, construction, financial services, transport and logistics are expected to soar from $ 3.1 billion to $ 11.5 billion, while tourism earnings are set to climb from around $ 2 billion to $ 8.5 billion.
“This is a massive task and an ambitious target, but we believe it is achievable with the right framework, strong stakeholder collaboration and commitment to developing key industries,” he added.
The Chairman acknowledged that foreign investors and diplomats often inquire about Sri Lanka’s political stability and long-term planning and he assured that the new Government’s five-year export and investment roadmap is designed to provide clarity and confidence needed to attract foreign direct investments (FDIs).
Wijesinghe also said the EDB aims to raise Sri Lanka’s per capita income from $ 680 to over $ 1,000 in the next five years. “This is critical for improving the overall wellbeing of the country and positioning Sri Lanka as a stronger player in global trade,” he added.
He also revealed that of the total 2,900 products exported by Sri Lanka’s 4,425 exporters, only 9-10% or about 474 companies generate over $ 1 billion annually and the majority fall into the small and medium enterprise (SME) category.
“To achieve our targets, these SMEs must scale up into medium and large enterprises,” he said, asserting the need for companies to diversify their value-added product offering to enhance competitiveness and increase export income.
Marine industries were identified as a significant growth area, as the global maritime industry is worth $ 1.5 trillion. “At present, the overall annual contribution of the maritime industries is around $ 200 million. Looking at the potential the industries have, I believe, it can easily generate over $ 1 billion in a couple of years,” he expressed with confidence.
The upcoming ‘Voyage Sri Lanka’ conference aims to highlight opportunities in the marine sector to the 200 international participants from over 40 countries. “Marine industries are developed to a certain extent, but have immense untapped potential. By showcasing these opportunities, we hope to position Sri Lanka as a regional hub for the blue economy,” he said.
He cited rubber and rubber-based products as another high-potential sector. “The global rubber market is valued at $ 500 billion and Sri Lanka is contributing just over $ 800 million in exports per year,” he pointed out, stressing the need to expand into re-exports and new value chains.
OSL take:
Sri Lanka’s exports sector is one of the key revenue generators to the country with the potential of further growth and profits. The many trade agreements and the trade concessions enjoyed by Sri Lanka with many foreign countries have also helped boost the local exports industry along with the many incentive schemes presented by the local authorities to attract foreign investments to the field. The local exports industry is poised to further expand with Sri Lanka’s focus on further increasing the number of countries that Sri Lanka enjoys trade ties with. Local authorities are also working on encouraging local exporters to further diversify and expand their existing export product portfolios to reach more foreign markets. All these developments are indicative of the increasing business/investment opportunities in Sri Lanka’s exports industry that guarantee returns on investment. Foreign businesses/investors could therefore confidently explore the expanding opportunities in the exports industry while also looking at the possibility of forming partnerships or joint ventures with local businesses in exports with the aim of further expanding operations locally and internationally. Sri Lanka also presents an ideal destination for foreign businesses to set up bases to engage with other countries that Sri Lanka enjoys strong trade ties with.
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