By:Staff Writer
August 26, Colombo (LNW): In a significant development for regional private-sector trade relations, the National Chamber of Exporters of Sri Lanka (NCE) has entered into a strategic partnership with India’s Federation of Indian Export Organisations (FIEO). This collaboration marks a milestone in strengthening commercial links between exporters of both countries, offering Sri Lankan businesses new pathways into one of the world’s largest and fastest-growing markets.
The Memorandum of Understanding (MoU), signed recently with the support of the Indian High Commission in Colombo, represents a commitment between two national export chambers—both private, non-state entities—to facilitate mutual growth through cooperation, capacity-building, and improved market access.
The partnership is expected to drive tangible outcomes in the short and medium term, particularly for Sri Lankan exporters looking to diversify amidst a fragile domestic economic recovery. Plans are already underway to send a business delegation to India, with a high-level Business Forum being organized to create direct linkages between Sri Lankan and Indian businesses.
Sri Lanka, which recorded around US$10 billion in export earnings in the first seven months of 2025, continues to rely heavily on external markets to drive its recovery from the economic crisis that began in 2022. The collaboration with FIEO is seen by many industry stakeholders as a practical way to boost export earnings and connect with India’s dynamic supply chains.
While the partnership leverages the existing framework of the India–Sri Lanka Free Trade Agreement (ISFTA)—in force since 2000—the current MoU remains strictly between private sector bodies. It does not represent a government-to-government trade pact, but instead reinforces the growing role of private chambers in advancing national export agendas.
However, the move also highlights an ongoing concern: the Sri Lankan government’s vague and often inconsistent approach to private sector development. Despite exporters playing a key role in economic stabilization, there is little evidence of a coherent strategy or support framework that aligns public policy with private sector ambition. This lack of clarity could limit the potential impact of such partnerships.
Analysts also caution that without proper regulatory support and infrastructure, Sri Lankan exporters may find themselves at a disadvantage when competing with Indian firms, which often benefit from better logistics, policy backing, and scale.
Still, the NCE remains focused on unlocking opportunities. “This MoU is about building bridges, not barriers,” one official noted. “By working with FIEO, we aim to enhance our members’ international competitiveness and open doors that may otherwise remain closed.”
As Sri Lanka looks to regain its economic footing, private-sector-driven collaborations like this may prove critical in creating sustainable export-led growth—provided they are complemented by clear policy direction and state facilitation, which are currently lacking.
