Sri Lanka seeks export diversification to boost economic growth
The Morning: Sri Lanka’s Export Development Board (EDB) anticipates generating $ 18.3 billion from merchandise and services exports in 2025, of which $ 14.1 billion of the projected exports are to be merchandise goods such as apparel and textiles, tea, spices, gems and jewelry, coconut products, rubber, and fish.
Speaking to The Daily Morning Business on navigating the global economic challenges for the year ahead, EDB Chairperson and CEO Mangala Wijesinghe said that Sri Lanka could benefit from diversifying its portfolio.
“The growth in industrial goods exports, particularly textiles and garments, highlights the potential for expanding in value-added apparel, sustainable textiles, and tech-based services,” he said.
Apparel and textiles, logistics, Information and communication technology and business process management (ICT/BPM), tea and rubber are set to be the key sectors dominating exports in 2025, respectively.
Apparel and textiles are projected to generate $ 5.3 billion, the logistics sector $ 1.9 billion, while the information and communication technology and business process management (ICT/BPM) sector is anticipated to contribute $ 1.7 billion.
Tea exports are expected to bring in $ 1.5 billion, followed by rubber-based products at $ 1.1 billion.
“There’s also an opportunity in the food and beverage sector, especially with rising global demand for organic and sustainable products.”
He noted that while agricultural exports have been facing challenges, growth could be seen by adding products like value-added spices and organic food items, which have strong demand in foreign markets.
“We are in consistent discussion with exporters across all the sectors focusing on sector-specific issues and strategies for growth. Key topics included regulatory easing, digitisation, and logistics improvements,” he said.
He added that a significant demand for customised, value-added products and services targeted at niche markets command premium prices.
“To support this, the EDB conducts comprehensive product-market analyses of high-end niche markets and shares these insights with the export community.”
“Exporters are concerned about the need for support in increasing competitiveness and accessing international markets, and the EDB is working on facilitating these with streamlined procedures and better market intelligence.”
Meanwhile, services exports are expected to account for $ 4.2 billion.
OSL take:
Sri Lanka’s exports industry is on a steady growth path showing great potential of further expansion. The industry showed resilience and growth even amidst the economic crisis faced by Sri Lanka in 2022. The exports industry is once again on a steady expansion path supported by the many trade agreements and concessions enjoyed by Sri Lanka with many foreign countries. The Sri Lankan government is also working on further strengthening and expanding trade ties with more countries, which would further support the country’s exports industry. The growth, profits and expansion recorded by Sri Lankan businesses in the exports industry are indicative of the increasing business potential in the industry. All these developments including the moves by the local authorities to introduce more incentives to businesses in the exports industry have presented many lucrative business/investment opportunities for foreign businesses/investors on the lookout for ventures in Sri Lanka. Many Sri Lankan export businesses have expanded operations overseas showing the increasing business potential in the exports industry. Foreign businesses/investors could therefore explore the direct and indirect business/investment opportunities in Sri Lanka’s export industry while also looking at expanding operations in Sri Lanka through partnerships or joint ventures with local businesses engaged in the industry.
Article Code : | VBS/AT/20250130/Z_1 |