Sri Lanka plans new incentives for agriculture, food and beverage sectors
Daily FT: President Anura Kumara Disanayake said that the Government aims to provide incentives, including tax concessions, to the agriculture and food and beverage industries to support export diversification and the development of value-added products, the President’s Media Division (PMD) has stated.
President Disanayake made these remarks at a pre-Budget 2026 meeting with private sector representatives of the agriculture and food and beverage sectors.
He added that the role of governments was to support industries rather than hinder them, and he underscored the necessity of consulting with relevant sectors during the regulation drafting process, ensuring sufficient time is allocated for their execution.
The PMD said the meeting focused on providing facilities for farmers, export growth, tax concessions, recycling, and the legal environment affecting the sector.
There was also extensive discussion on ensuring a continuous supply of quality agricultural and food products to consumers, as well as the challenges faced by businesses, with participants sharing their views and proposals.
The President noted that although producers typically set product prices, in the agricultural sector, it is frequently the consumers who establish these prices, primarily due to inadequate mechanisms within the industry. He also noted the lack of a systematic approach for distributing products to consumers, emphasising the necessity for enhanced cooperation between the Government and the private sector to address these challenges.
President Disanayake further explained that the Government was focusing on securing full private sector support to expand markets for agricultural produce, dairy, and livestock products. While the responsibility of adding value rests with entrepreneurs, the President stated that the Government intends to introduce a new framework to facilitate this process.
Attention was also drawn to the livestock industry due to its challenges in achieving productivity, primarily because it has not evolved into a well-structured small- and medium-scale sector. Discussions were held on strengthening livestock production and formalising distribution systems.
OSL take:
The government of Sri Lanka is on an aggressive pursuit of attracting more foreign businesses/investors to the country as its overall economy is on a steady growth path. While the country’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed with many foreign countries have given a boost to the country as an emerging business destination in the South Asian region, it is the many incentive schemes offered to foreign businesses/investors that have attracted many to explore the expanding business/investment opportunities in the country. With Sri Lanka’s overall economic expansion creating an increasing demand in all key economic sectors including goods and services, there are many lucrative business ventures now open for foreign businesses/investors. Given that the country is on the path to becoming a hub in the South Asian region, foreign businesses/investors could be part of this growth process by entering into Sri Lanka’s economy through the existing business/investment opportunities or through partnerships or joint ventures with local businesses.
| Article Code : | VBS/AT/20250904/Z_4 |