By a special cprrespondent
Sri Lanka is preparing to launch its National Export Development Plan (NEDP) next month, aiming to drive sustained export growth, diversify products, and expand into new global markets. The plan, developed in collaboration with industry stakeholders, government agencies, and international partners including the Asian Development Bank (ADB), targets annual export growth exceeding 10%, according to Export Development Board Chairman Mangala Wijesinghe.
“The plan is designed to strengthen our traditional sectors while opening new avenues for higher-value exports,” Wijesinghe said. Traditional pillars such as apparel, tea, rubber, and coconut products will remain key, but the government is prioritising high-potential sectors such as automotive components, electrical and electronic products, processed foods, spices, gems and jewellery, and mineral-based industries. These sectors are seen as capable of moving Sri Lanka further up the global value chain.
A central feature of the NEDP is market diversification, aimed at reducing Sri Lanka’s vulnerability to shocks in key export destinations. Currently, 25% of exports go to the United States and 23% to the European Union, exposing the economy to external disruptions, especially amid global geopolitical tensions such as the ongoing Gulf conflict.
“Expanding exports to Africa, the Middle East, and Asia is critical for resilience,” Wijesinghe said, noting that last year exports to Africa grew over 46%, while shipments to the Middle East increased by 25%, demonstrating strong potential outside traditional markets.
Sri Lanka also plans to leverage existing trade agreements to accelerate export expansion. Preferential access frameworks like SAFTA, APTA, bilateral FTAs with India and Pakistan, and duty-free EU access under GSP+ are expected to play a pivotal role. Recently, the UK extended preferential zero-tariff access for several Sri Lankan products, strengthening opportunities for local exporters.
However, analysts warn that the NEDP will face challenges. The ongoing Gulf crisis, including rising oil prices, trade route disruptions, and geopolitical uncertainty, could have ripple effects on Sri Lanka’s main exports, especially tea, apparel, and spices, which rely heavily on stable shipping lanes. Any escalation in conflict or sanctions could shock the export sector, threatening the ambitious 10% growth target.
The plan also aims to enhance Sri Lanka’s competitiveness through improved quality standards, value addition, and stronger logistics infrastructure, while encouraging private sector investment in emerging sectors. Experts note that careful implementation will be key: failing to diversify markets and products could leave the country exposed to future global shocks.
If successful, the NEDP could transform Sri Lanka’s export profile, reduce reliance on a few markets, and create more resilient revenue streams for an economy that has historically been vulnerable to external shocks. But the Gulf crisis and other geopolitical tensions serve as a stark reminder of how fragile the export sector remains.