Sri Lanka’s export sector achieved a historic milestone in 2024, recording its highest-ever earnings of $16.17 billion. This remarkable growth, despite global economic challenges, reflects the resilience and adaptability of Sri Lankan exporters. At the forefront of this success is the Export Development Board (EDB), playing a pivotal role in driving innovation, market expansion, and strategic policy initiatives.

In an exclusive conversation with Global CEO Magazine, Mangala Wijesinghe, Chairman and Chief Executive of the EDB, shares his insights into the factors behind this record-breaking performance, the strategic initiatives shaping Sri Lanka’s export future, and the plans to enhance global competitiveness.

With over 23 years of leadership experience spanning multiple industries, including pharmaceuticals, consumer goods, finance, technology solutions, and engineering, Wijesinghe brings a wealth of expertise to his role. His commitment to excellence and forward-thinking approach are instrumental in shaping Sri Lanka’s export trajectory.
From diversifying export markets and investing in digital transformation to fostering sustainable production and strengthening global trade ties, Sri Lanka is positioning itself as a key player in the international marketplace.

In this discussion, Wijesinghe outlines the EDB’s strategies for sustaining momentum, overcoming challenges, and ensuring long-term growth for Sri Lanka’s exports.

• Sri Lanka achieved its highest-ever export earnings of $16.17 billion in 2024, surpassing previous records. What were the key factors that contributed to this remarkable growth?

Despite global economic uncertainties, Sri Lankan exporters demonstrated remarkable adaptability and resilience. They navigated rising production costs, supply chain disruptions, and shifting global demand by diversifying markets, optimising supply chains, and leveraging digital trade solutions. Their ability to maintain quality standards and fulfil international compliance requirements helped sustain and expand export opportunities.
Sri Lankan businesses adopted innovative and forward-thinking strategies to drive export growth. Key initiatives included:
• Diversification of export markets beyond traditional destinations, reducing reliance on specific regions.
• Value addition and innovation, especially in key sectors such as apparel, tea, rubber, and IT services, enhancing competitiveness.
• Sustainability-driven production, aligning with global demand for eco-friendly and ethically sourced products.
• Investment in digitalisation and automation, improving efficiency and expanding access to e-commerce platforms.
A stable political environment in 2024 provided much-needed investor confidence and policy consistency, enabling businesses to plan and expand their operations without uncertainty. Macroeconomic stability, effective governance, and a focus on economic reforms created an environment conducive to export growth.

• Merchandise exports grew by 6.67% to $12.7 billion, while service exports increased by 8.51% to $3.46 billion. Could you elaborate on the sectors that drove this growth and any specific strategies implemented to support these industries?

Sri Lanka’s export sector achieved remarkable growth in 2024, with merchandise exports climbing 6.67% to $12.7 billion and service exports surging by 8.51% to $3.46 billion. This upward trajectory was especially evident in December, when total exports reached $1.37 billion, marking a 9.21% year-on-year increase. Merchandise exports alone grew 4.06% to $1.04 billion, fuelled by strong performances in apparel, tea, and coconut-based products, while service exports skyrocketed 29.96% to $322.92 million, largely driven by ICT and logistics.

The apparel and textile industry, Sri Lanka’s largest export earner, continued its steady rise, posting a 3.83% increase to $5.05 billion, with exports to the United States and the United Kingdom expanding by 5.05% and 7.6%, respectively. Meanwhile, the tea industry showcased resilience, generating $1.44 billion in revenue, reflecting a 9.62% YoY increase, supported by double-digit growth in bulk tea (11.74%) and tea packets (9.07%). The rubber sector also saw a 7.66% boost to $1 billion, with industrial and surgical glove exports surging 23.09%, capitalising on continued global demand.

A standout performer was coconut-based products, which experienced the highest sectoral growth, rising 20.9% to $856.39 million. This was largely fuelled by significant gains in coconut oil (24.05%), desiccated coconut (39.22%), and cocopeat (23.16%), reinforcing Sri Lanka’s growing reputation for high-value agricultural exports. Similarly, spices and concentrates saw a 16.11% boost to $461.85 million, led by an astonishing 90.14% surge in pepper exports, alongside steady cinnamon growth at 3.87%.

Beyond merchandise, Sri Lanka’s service exports made an impressive leap, further cementing the country’s position in the digital and logistics economy. The ICT/BPM sector expanded by 18.55% to $1.45 billion, reflecting the increasing global demand for Sri Lankan tech services, while logistics and transport services rose by 13.13% to $1.75 billion, capitalising on Sri Lanka’s strategic location as a regional trade hub.

The continued diversification of Sri Lanka’s export portfolio, supported by innovation, value addition, and strategic government initiatives, played a crucial role in this success. By tapping into emerging markets, investing in technology, and strengthening supply chain capabilities, Sri Lankan exporters are proving their adaptability and resilience in an evolving global landscape.

• You have emphasised the need to make exports a national priority. What policy changes or strategic initiatives do you believe are necessary to enhance Sri Lanka’s global export competitiveness?

Enhancing Sri Lanka’s global export competitiveness requires a holistic and strategic approach that prioritises value chain optimisation, deeper integration into global markets, and cost-effective production strategies. To achieve this, a national policy framework must be designed to strengthen export-oriented industries, encourage innovation, and create an enabling business environment.

A key area of focus should be value chain optimisation, ensuring that Sri Lankan industries maximise efficiency at every stage of production. This involves enhancing productivity, improving quality standards, and investing in advanced technology to increase competitiveness. Forward and backward integration is equally critical—building strong backward linkages with local raw material suppliers will reduce dependency on imports and cut production costs, while forward integration through branding, market intelligence, and direct engagement with global buyers will help Sri Lankan exporters capture more value in international markets.

To link Sri Lanka more effectively to Global Value Chains (GVCs), exporters need greater access to international supply networks. This can be achieved by attracting Foreign Direct Investment (FDI), forming strategic trade partnerships, and leveraging Free Trade Agreements (FTAs) to create seamless market access. By positioning itself as a reliable manufacturing and services hub, Sri Lanka can secure a stronger foothold in key global industries such as apparel, IT/BPM, agribusiness, and logistics.

Cost-effective strategies will play a pivotal role in improving price competitiveness. Enhancing energy efficiency, reducing logistics costs through improved infrastructure, and leveraging automation and digitalisation can significantly lower production expenses. Additionally, government policies should support Small and Medium-sized Enterprises (SMEs) through access to affordable financing, export incentives, and skill development programmes to ensure a wider base of globally competitive exporters.

To make exports a true national priority, policy consistency, public-private collaboration, and a long-term vision for trade development are essential. By fostering an export-driven economic model with strong institutional support, Sri Lanka can enhance its resilience, expand its market reach, and solidify its position in the global trade ecosystem.

• December 2024 saw significant growth in apparel and textiles, tea, rubber-based products, coconut-based products, spices, and food and beverages. How does the EDB plan to sustain and further accelerate growth in these key sectors?

The Export Development Board (EDB) is committed to sustaining and accelerating the growth of Sri Lanka’s key export sectors—apparel and textiles, tea, rubber-based products, coconut-based products, spices, gems and jewellery, and food and beverages—through a strategic and multifaceted approach. By prioritising value addition, market diversification, efficient facilitation, and proactive issue resolution, the EDB aims to enhance the global competitiveness of Sri Lankan exports while ensuring long-term sustainability.

A key focus is on value addition, ensuring that Sri Lankan products move beyond raw material exports to high-value, differentiated offerings. In the apparel sector, this means integrating advanced technologies, sustainable production methods, and high-end fashion innovation to attract premium buyers. For tea and spices, the emphasis is on organic certification, specialty blends, and innovative packaging to cater to health-conscious and gourmet markets. In the rubber and coconut-based industries, the shift towards eco-friendly, high-performance products will create greater global demand.

Finding premium niche markets is another crucial strategy. Sri Lanka must target high-value consumer segments in developed economies where ethical sourcing, sustainability, and premium quality command higher prices. The tea industry, for example, can strengthen its position in luxury and wellness markets, while Sri Lankan spices can penetrate the organic and natural food industries. Apparel exporters are already exploring opportunities in the high-performance, athleisure, and technical textile segments, ensuring higher margins and reduced price competition.

To facilitate this expansion, the EDB is focused on efficient trade facilitation, ensuring a seamless export process through digitalisation, streamlined regulations, and trade infrastructure improvements. Reducing bureaucratic bottlenecks, enhancing logistics efficiency, and improving port connectivity will allow Sri Lankan exporters to compete effectively in global markets.

Additionally, addressing pressing issues faced by exporters is a top priority. The EDB is actively working on resolving challenges related to high production costs, supply chain disruptions, and trade barriers by engaging with policymakers, industry stakeholders, and international trade bodies. Programmes to support SMEs, enhance access to export financing, and provide skill development opportunities will further strengthen the resilience of the sector.

Lastly, finding new markets through targeted trade missions, FTAs, and enhanced global branding efforts is essential. Sri Lanka must expand its reach beyond traditional markets in the US and Europe by tapping into emerging markets in Asia, the Middle East, and Africa. Strengthening bilateral trade agreements and participating in international expos and trade fairs will help exporters build long-term relationships and secure new business opportunities.

By integrating these strategic initiatives, the EDB is laying a strong foundation for sustainable export growth, ensuring that Sri Lanka’s key industries continue to thrive in the competitive global marketplace.

• Service exports saw a substantial rise, particularly in ICT/BPM, construction, financial services, transport, and logistics. How is the EDB supporting service-based industries to ensure their continued expansion in international markets?

The Export Development Board (EDB) is actively supporting Sri Lanka’s service-based industries—including ICT/BPM, construction, financial services, transport, and logistics—to ensure their continued expansion in international markets. By addressing bottlenecks in the export supply chain, facilitating investments, and fostering intergovernmental collaboration, the EDB is creating an enabling environment for these industries to thrive on a global scale.
One of the key focus areas is removing bottlenecks in the export supply chain by streamlining regulatory frameworks, improving the ease of doing business, and enhancing digital infrastructure. In the ICT/BPM sector, this includes initiatives to reduce compliance burdens, simplify cross-border payments, and improve intellectual property protection, making Sri Lanka a more attractive destination for foreign clients and investors. For logistics and transport services, the emphasis is on modernising port and airport facilities, reducing processing times, and implementing digital tracking systems to increase efficiency and global competitiveness.

To enhance investment in service exports, the EDB is actively working with both local and foreign investors to boost sectoral growth. Special incentives, such as tax benefits, investment facilitation, and capacity-building programmes, are being introduced to attract global firms looking to establish outsourcing hubs in Sri Lanka. In the construction and financial services sectors, Public-Private partnerships (PPPs) and trade financing solutions are being explored to expand international project participation and secure long-term contracts.

Intergovernmental collaboration is another key pillar in strengthening Sri Lanka’s footprint in international service markets. This includes lobbying for Mutual Recognition Agreements (MRAs) for Sri Lankan professionals, allowing skilled workers in engineering, ICT, finance, and consulting to operate seamlessly in international markets.

Furthermore, branding and promotional efforts are being intensified to position Sri Lanka as a hub for high-value service exports. Targeted marketing campaigns, participation in global trade fairs, and digital outreach programmes are ensuring greater visibility and credibility for Sri Lankan service providers in high-growth international markets.

By addressing critical challenges, attracting investment, and strengthening international collaborations, the EDB is laying the groundwork for sustained growth in Sri Lanka’s service export sector, ensuring its long-term resilience and competitiveness on the global stage.

• Despite the strong performance, what are the main challenges facing Sri Lankan exporters today? How is the EDB addressing these challenges to ensure long-term sustainability and resilience?

Despite the strong performance of Sri Lankan exports, several challenges continue to hinder long-term sustainability and resilience. Key concerns include rising production costs, limited market access, underutilisation of trade agreements, and the need for greater integration into global value chains. The Export Development Board (EDB) is proactively addressing these issues through targeted policy measures, trade facilitation initiatives, and strategic partnerships to ensure sustained export growth.

One of the most pressing challenges is the high cost of production, driven by rising energy costs, raw material shortages, and increasing labour expenses. To counter this, the EDB is encouraging cost-efficient manufacturing techniques, process automation, and the adoption of renewable energy solutions to enhance competitiveness while maintaining sustainability standards. Additionally, exporters are being incentivised to invest in lean manufacturing and productivity enhancement programmes to improve operational efficiency.

Another critical focus is value addition, ensuring that Sri Lanka moves beyond traditional commodity exports to high-value, differentiated products. In sectors like apparel, tea, rubber, and coconut-based products, the push is towards branding, premium packaging, and innovation in product development to attract high-end markets. For services like ICT/BPM and logistics, the EDB is driving investment in skill development, digital transformation, and specialised solutions to enhance global demand.

Expanding access to neighbouring markets, particularly India, is another priority. While Sri Lanka already enjoys preferential access to the Indian market through the Indo-Sri Lanka Free Trade Agreement (ISFTA), there is significant untapped potential. The EDB is working closely with trade authorities to resolve non-tariff barriers, streamline export procedures, and strengthen supply chain connectivity to maximise exports to India. Additionally, efforts are being made to optimise the utilisation of existing Free Trade Agreements (FTAs) with countries like Pakistan and Singapore, ensuring that exporters fully benefit from preferential tariffs and improved market access.

Recognising the need to diversify export destinations, the EDB is also actively seeking opportunities in potential markets, particularly in the Middle East, Africa, and East Asia, where demand for Sri Lankan products is growing.

Finally, integrating Sri Lanka into Global Value Chains (GVCs) through component manufacturing and strategic partnerships is a major initiative. The country has the potential to become a regional hub for intermediate goods, precision manufacturing, and high-tech assembly. The EDB is actively promoting Sri Lanka as an investment destination for multinational corporations, encouraging joint ventures and technology transfers to enable local companies to plug into international supply networks.

By addressing these key challenges—reducing production costs, enhancing value addition, expanding market access, and strengthening global trade integration—the EDB is ensuring that Sri Lankan exports remain resilient, competitive, and future-ready in an increasingly dynamic global trade environment.

• Looking ahead, what are your key priorities and strategic plans for 2025 and beyond? Are there new markets or emerging industries that the EDB is focusing on to further diversify Sri Lanka’s export portfolio?

Looking ahead to 2025 and beyond, the Export Development Board (EDB) is committed to ensuring Sri Lanka’s export sector remains competitive and resilient by diversifying its product offerings and tapping into emerging markets. The key priorities and strategic plans will focus on innovation, market expansion, and sectoral diversification, with an emphasis on higher value-added products and new, high-growth regions.

A major part of the EDB’s future strategy is to move beyond low to medium-tech products and start focusing on technically advanced, high-value products. This includes promoting the manufacturing and export of high-tech electronics, precision engineering components, and green technologies, which will help Sri Lanka establish itself as a more competitive player in Global Value Chains (GVCs). The EDB will encourage technology adoption, R&D investment, and skill development to enable Sri Lankan businesses to make the leap into these more advanced sectors.

The EDB will also focus heavily on expanding exports to new markets, with particular attention on the African region, the Middle East, and South Asia. While Sri Lanka has traditionally relied on Western markets, Africa’s rapidly growing middle class presents huge potential for products such as tea, apparel, and coconut-based goods. The Middle East and South Asia, with their proximity and trade agreements, offer untapped potential in both goods and services, especially in construction, engineering, and digital services. Thailand, a growing hub for manufacturing and logistics, represents another promising market for Sri Lankan exporters to strengthen their foothold in Asia’s economic corridors.

The service sector will also be a key area of focus for the EDB, with plans to expand the export of services in ICT/BPM, logistics, and marine & offshore sectors. The ICT/BPM sector, already a significant earner for Sri Lanka, will be further developed with initiatives to expand digital export capacity and attract global tech giants. Additionally, Sri Lanka has significant potential to become a key player in the marine and offshore industry, with its strategic location in the Indian Ocean. The EDB will explore new opportunities in shipbuilding, marine services, and offshore energy sectors to attract foreign investment and increase the export of specialised services.

Furthermore, to optimise market access, the EDB will work on securing new Free Trade Agreements (FTAs) with potential high-growth markets, especially in Africa and the Middle East, while improving the utilisation of existing FTAs to ensure Sri Lankan exporters benefit fully from preferential access to established markets. Trade missions, digital marketing campaigns, and participation in international trade expos will be ramped up to enhance Sri Lanka’s global visibility and build long-term relationships with foreign buyers.

Through these efforts, the EDB’s vision for 2025 and beyond is to transform Sri Lanka’s export landscape, ensuring a dynamic, diversified, and technologically advanced export portfolio that meets the demands of the global market and positions Sri Lanka as a key player in global trade.