By: Staff Writer
April 04, Colombo (LNW):The National Chamber of Exporters of Sri Lanka (NCE) has urged the Indian government to provide duty-free access to Sri Lankan goods for a five-year period, a move it believes would significantly support the island nation’s struggling export sector and broader economic recovery.
This appeal comes ahead of Indian Prime Minister Narendra Modi’s official visit to Sri Lanka. In a statement released yesterday, the NCE emphasized that such a concession would have minimal impact on India’s vast economy, given Sri Lanka’s relatively small $16.5 billion export basket compared to India’s $3.8 trillion GDP. The Chamber argued that India’s granting of duty-free access and reduction of non-tariff barriers would demonstrate meaningful support without imposing a major economic burden.
The NCE stressed that this request aligns with India’s broader trade strategy, as the country is actively seeking duty-free access for its own exports in numerous international markets. Given the longstanding, multifaceted relationship between the two nations, the Chamber expressed confidence that India would consider the request in a positive light—especially during this critical phase of Sri Lanka’s recovery.
Historically, Sri Lanka and India have shared deep cultural and economic ties rooted in common heritage, trade, religion, and mutual cooperation. India has consistently supported Sri Lanka in times of need, providing vital assistance in areas such as healthcare, financial aid, strategic investments, and tourism. India is also Sri Lanka’s largest source of inbound tourists, further underlining the importance of bilateral relations.
Despite South Asia’s overall economic progress, Sri Lanka has faced significant challenges, including political instability, the 2019 Easter attacks, the COVID-19 pandemic, and an ongoing financial crisis. These setbacks have severely hampered the country’s development and strained its foreign exchange reserves.
The Sri Lankan export community, a key driver of foreign income, has shown resilience in these turbulent times. However, export earnings have remained stagnant for over a decade. Inspired by the export growth seen in regional peers like Bangladesh and Vietnam, local exporters are increasingly advocating for policy reforms, digitization, and strategic actions aimed at achieving exponential—not just incremental—growth.
According to the NCE, discussions among exporters and interactions with policymakers have highlighted the urgent need for a bold export strategy. They see India’s support as essential to this effort, positioning India not just as a neighbor, but as a potential catalyst for transformation. By offering duty-free access, India can empower Sri Lankan small and medium enterprises (SMEs) to scale up, attract investment, and strengthen the country’s foreign exchange inflows.
Looking forward, the NCE suggests that Sri Lanka must strategically distinguish between temporary financial aid and long-term, sustainable support. Achieving self-reliance and economic resilience, they argue, will depend on partnerships like the one with India—particularly if such collaboration paves the way for increased trade and mutual prosperity.
