New NEDP targets over 10% annual export growth, expands focus to emerging sectors
Daily FT: Export Development Board (EDB) Chairman Mangala Wijesinghe has said the upcoming National Export Development Plan (NEDP), expected to be launched next month, aims to drive sustained export growth, enhance global competitiveness, and diversify both products and markets.
Developed in collaboration with industry stakeholders, Government agencies, and international partners, including the Asian Development Bank (ADB), the NEDP outlines a roadmap to achieve over 10% annual export growth, which Wijesinghe said is essential to meeting Sri Lanka’s broader export expansion targets.
The strategy will continue to strengthen traditional export pillars such as apparel, tea, rubber, and coconut-based products, while also prioritising new high-potential sectors capable of moving the country further up the global value chain.
Among the priority sectors identified under the NEDP are automotive components, electrical and electronic products, mineral-based industries, processed food and beverages, spices, and gems and jewellery.
“These sectors have strong global demand and offer significant opportunities for Sri Lanka to move up the value chain,” Wijesinghe said.
A key pillar of the NEDP is market diversification, aimed at reducing Sri Lanka’s heavy dependence on a few export destinations. “At present, about 25% of Sri Lanka’s exports are directed to the US, while 23% are shipped to the EU, making the economy vulnerable to external shocks affecting these markets,” he added.
Wijesinghe noted that expanding exports to emerging markets such as Africa, Asia, and the Middle East will be critical to strengthening resilience in Sri Lanka’s export sector. “Last year, we recorded export growth of over 46% to Africa and over 25% to the Middle East, which clearly demonstrates the potential in these regions,” he said.
The NEDP also highlights the importance of leveraging existing trade agreements to accelerate export expansion. Sri Lanka currently benefits from preferential market access through frameworks such as the South Asian Free Trade Area (SAFTA), the Asia-Pacific Trade Agreement (APTA), and bilateral free trade agreements with India and Pakistan, as well as duty-free access to the EU under the Generalised Scheme of Preferences Plus (GSP+).
In addition, he said the UK has recently extended preferential trade access, allowing many Sri Lankan products to enter the UK market at zero tariffs, further strengthening export opportunities for local industries.
OSL take:
Sri Lanka’s steadily growing export sector is likely to witness further growth with the proposed NEDP. This move would be benefited by Sri Lanka’s ongoing efforts to further strengthen existing trade ties with foreign countries while also working on further expanding the country’s trade ties to include more foreign markets. It is therefore evident that there is an expansion in business/investment opportunities in Sri Lanka’s export industry given the focus of local export authorities to further expand the industry through more value addition and diversification of export product portfolios to meet the increasing demand in foreign markets. All these developments further indicate that business/investment opportunities in Sri Lanka’s export industry as well as related sectors present lucrative opportunities for foreign businesses/investors. The growth and profits recorded by businesses already engaged in the industry and the increasing interest among foreign businesses/investors to explore expanding opportunities in Sri Lanka also indicate the increasing business potential in Sri Lanka’s export industry and related sectors. There are also opportunities for foreign businesses to engage in Sri Lanka’s export industry through local collaborations.
| Article Code : | VBS/AT/202603016/Z_1 |