By: Staff Writer
March 15, Colombo (LNW): Sri Lanka is taking bold steps to revitalise its export sector, with the National Export Development Plan (NEDP) set for release next month. Chairman of the Export Development Board (EDB), Mangala Wijesinghe, outlined a strategy aimed at achieving over 10% annual export growth by combining product diversification with expansion into emerging markets.
The plan seeks to maintain Sri Lanka’s traditional exports tea, apparel, rubber, and coconut-based goods—while prioritising sectors with higher global demand, including automotive parts, electronics, processed food, spices, minerals, and gems and jewellery. “These industries offer significant opportunities for Sri Lanka to move up the value chain,” Wijesinghe said.
A key focus of the NEDP is reducing overreliance on a limited number of markets. Currently, US and EU markets account for nearly half of all Sri Lankan exports, making the country vulnerable to global economic shocks. Recent geopolitical tensions, particularly the Gulf War crisis, have underscored the risks: rising freight costs, disrupted shipping routes, and volatile oil prices could affect the competitiveness of exports, especially in tea, apparel, and spices.
The government is actively promoting market diversification, expanding trade with Africa, Asia, and the Middle East. Last year alone, exports to Africa grew 46%, while exports to the Middle East rose 25%, highlighting the potential of non-traditional destinations.
To further accelerate growth, Sri Lanka will leverage trade agreements, including SAFTA, APTA, bilateral FTAs with India and Pakistan, and EU duty-free access under GSP+. The recent extension of zero-tariff access to the UK is expected to benefit multiple sectors, particularly garments and processed foods.
Financially, the country faces both opportunity and risk. The NEDP assumes sufficient investment in infrastructure, quality standards, and logistics to support high-value exports. Any delays or policy missteps could reduce market competitiveness and undermine projected growth. Moreover, external shocks such as rising oil prices or further Gulf instability could force exporters to absorb higher costs, impacting profit margins and export volumes.
Analysts suggest that moving up the value chain will require strategic public-private partnerships, technological upgrades, and targeted support for emerging sectors. The plan also recognises that maintaining Sri Lanka’s reputation for quality products is critical for success in competitive international markets.
If executed effectively, the NEDP could strengthen Sri Lanka’s economic resilience, reduce dependency on a few markets, and open new revenue streams for exporters. However, global uncertainties, including geopolitical tensions in the Gulf, remain a potent risk to the nation’s ambitious export growth targets.