Sri Lanka at an advantageous position to bring in value-addition for exports: Deloitte India
Sri Lanka is at an advantageous position to bring in value-addition stages for its exports but to do so, significant focus needs to be given to bring in the necessary policies, infrastructure and administrative measures, said Deloitte India Executive Director Direct Tax Policy Vijay Chauhan.
Chauhan stressed on the administrative measures, which are necessary to assure the investors that there is stability in the country and that the benefits of trade would be provided to the investors.
He noted that President Anura Kumara Dissanayake emphasised the development of infrastructure at the Colombo Port and Bandaranaike International Airport, with a special focus on the transport of cargo, which can lead to the export of value-added goods.
Chauhan made these comments at a panel discussion organised by Deloitte Sri Lanka and Maldives, to provide insight into the 2026 national budget proposals.
The latest budget also focused greatly on exports, foreign investments, supply chains and logistics, which Chauhan said are areas that need a lot of attention, due to the US’ global tariff actions, import controls imposed by other countries and other global developments.
“Exports are essential for foreign exchange and are an important component of economic stability. The International Monetary Fund has also been emphasising this,” Chauhan said.
In 2024, Sri Lanka’s exports as a percentage of its GDP was around 20 percent, far behind its peers Vietnam at 86 percent, Malaysia at 71 percent and Thailand at 70 percent, revealed Deloitte’s 2026 Budget Analysis Report.
Moreover, Deloitte noted that further diversification is needed for Sri Lanka to reduce dependency.
Chauhan also said a lot of countries are trying to focus on market access through free trade agreements and the streamlining of tariffs.
“But tariffs are just one part of international trade,” he added, stressing that the USA’s current tariff structure may not continue in the foreseeable future.
According to Chauhan, international trade or the global supply chain, is also up for realignment, with many countries looking to source goods or set up manufacturing processes.
Signing free trade agreements alone is not enough, as the streamlining of processes, particularly those not related to tariffs, is also a necessity,” he stressed.
“International investors will look into the clarity of relevant laws and some would also scrutinise the level of trust given by the government. Because many regulatory agencies are introduced, due to an absence of trust in international trade and investors,” he opined.
The 2026 budget proposals revealed that the government would introduce a new tariff policy, improve the necessary financial facilities for the promotion of new goods and services exports and establish a Trade National Single Window (TNSW).
Rs.2,500 million has been allocated for the TNSW facility and the existing trade agreements will also be reviewed and renegotiated by an expert committee.
