Sri Lanka is unlikely to meet its 2025 export target of USD 18.2 billion, with officials attributing the shortfall to both domestic and global pressures, including the severe weather experienced in recent weeks. Nevertheless, the country is preparing for a major overhaul of its export strategy in a bid to raise earnings to USD 20 billion in 2026.
Speaking at the ‘Investment Pulse – Why Sri Lanka: Investor View’ session during the Sri Lanka Economic Summit, Export Development Board (EDB) Chairman Mangala Wijesinghe said export revenue for 2025 is expected to close at between USD 17 and 17.5 billion.
Despite the gap, he noted that export performance has been relatively encouraging. Merchandise and services exports for the first ten months of the year totalled USD 14.4 billion—an increase of 6 per cent—marking one of the strongest growth periods in over a decade.
Long-Term Diversification at the Core
The EDB has set out a long-term strategy to reduce Sri Lanka’s dependence on traditional commodities and apparel. It aims to increase the contribution of exports to GDP from around 19 per cent to 25 per cent by 2030. Achieving the envisaged USD 36 billion in export earnings by that year—USD 28 billion from goods and over USD 8 billion from services—will require sustained annual growth of 10–12 per cent from 2026 onwards.
Wijesinghe stressed that diversifying products, upgrading value chains, and entering new markets will be essential if Sri Lanka is to break out of its long-standing export constraints.
National Export Development Plan (NEDP)
A new National Export Development Plan for 2026–2030 is set to be released in January 2026. Prepared in collaboration with the Asian Development Bank, the plan outlines how Sri Lanka intends to translate its export targets into investment, skills training, and expanded market access.
The NEDP is built around three priority pillars:
Enhancing trade competitiveness
Strengthening regional and global market integration
Supporting sustainable, trade-led growth
Priority Sectors for Expansion
While apparel, tea, coconut, and rubber still account for roughly 60 per cent of export value, the EDB has singled out several high-potential sectors for accelerated growth. These include:
ICT/BPM: Expected to exceed USD 1.7 billion this year and grow beyond USD 5 billion by 2030
Logistics: Currently worth around USD 1.7 billion, with projected annual growth of 15–20 per cent
Electronics and electrical manufacturing
Food and beverages
Spices, gems, and jewellery
Mineral-related exports have also been flagged as an underdeveloped but highly promising area for expansion.
Market and Policy Shifts
Sri Lanka remains heavily dependent on the United States and Europe, which together account for nearly half of total export earnings. To reduce this imbalance, the EDB is pushing for stronger engagement with African, Asian, and Middle Eastern markets, which recorded growth of more than 25 per cent between January and October.
Diplomatic missions have now been assigned specific export performance targets, reflecting a renewed focus on economic diplomacy.
Meanwhile, a Ministerial Committee reviewing the country’s Free Trade Agreements and preferential trade deals is expected to present its findings early next year.
Several policy reforms have been included in the 2026 Budget, including modernisation of the outdated tariff structure. Additionally, Rs. 2.5 billion has been allocated to advance the National Single Window initiative, which will digitally integrate agencies such as the BOI, EDB, and Customs to streamline trade processes.
The Export Development Council of Ministers—chaired by the President and revived after two decades—is expected to play a central role in overseeing the implementation of the NEDP.
Wijesinghe added that the new direction signals a decisive attempt to build a more resilient, diversified, and technologically driven export economy.
