By: Staff Writer
July 14, Colombo (LNW): In a bid to cushion the impact of the United States’ recently announced 30% tariff hike, the Sri Lankan government is set to roll out a new National Export Strategy (NES) aimed at restructuring and diversifying the country’s narrow export base, official sources revealed.
The US tariff hike—expected to significantly affect Sri Lanka’s already vulnerable export economy—comes at a time when the country’s trade portfolio remains largely undiversified and heavily reliant on a few sectors and markets. Analysts say the lack of export diversification has plagued Sri Lanka’s trade sector for decades, with little change in export composition since the mid-1990s.
In contrast, countries like Vietnam and Thailand have successfully integrated into global production networks and significantly diversified their exports. Recognizing this gap, Sri Lanka’s 2025 budget speech proposed the formulation of a National Export Development Plan for 2025–2029.
While details of the plan remain under wraps, policymakers are drawing lessons from past efforts to ensure the new strategy is both actionable and politically sustainable.
A key focus will be on ensuring bipartisan support to avoid disruptions due to political changes—a factor that undermined the previous NES (2018–2022), which, despite being developed with the support of the International Trade Centre, faced delays and poor implementation due to shifting political priorities and bureaucratic inertia.
Finance Ministry officials stressed that the upcoming strategy will not require starting from scratch. “Many components of the previous NES are still valid and can be reactivated,” a senior official said. “Our goal now is to ensure that implementation is evidence-based, continuous, and delinked from political cycles.”
The upcoming export strategy will also emphasize broad stakeholder participation, involving industry players, provincial representatives, and international experts. This inclusive approach is expected to ensure that the strategy aligns with both global market realities and local business needs.
The government is also set to launch multiparty discussions on the long-term implications of the US tariff hike, in an effort to formulate a unified national response that transcends immediate political agendas.
Among the sector-specific strategies under consideration is a renewed push for the IT and Business Process Management (IT-BPM) sector, which had been part of the 2018–2022 NES. This approach includes creating a business-friendly environment and fostering public-private partnerships to support high-potential firms through targeted financing and market access programs.
The new plan will also place a strong emphasis on innovation and support for small and emerging exporters through mechanisms like the Export Market Access Support Program. These targeted initiatives are expected to boost Sri Lanka’s global competitiveness and build resilience against external shocks like the US tariff increase.
As Sri Lanka navigates this critical economic juncture, the success of the new export strategy could prove pivotal in shaping the country’s long-term trade and economic trajectory.
