Exporters seek urgent reforms, labour solutions in Budget 2026

Indhra Kaushal Rajapaksa

Shiham Marikar

The National Chamber of Exporters of Sri Lanka (NCE) has submitted a comprehensive package of proposals for the upcoming national budget, calling for bold reforms to strengthen the export sector, attract investment and enhance the country’s global competitiveness.

The chamber said its recommendations were developed through consultations with the members and sectoral heads to reflect the genuine challenges and aspirations of the exporters across industries. 

While specific reforms were proposed for high-potential sectors such as minerals, floriculture and horticulture, most of the measures were cross-cutting and intended to benefit all export industries.

Among its proposals, the NCE called for the installation of a modern cargo scanner at the Katunayake Export Processing Centre and a single-window digital system for exporter registration and renewals. To strengthen brand equity, it urged government-backed liability insurance, tax concessions for brand building, fast-tracked trademark registration, Sri Lanka’s accession to the Madrid Protocol and a relaunch of the Export Development Board’s Brand Development Programme along with global campaigns to showcase Sri Lankan quality.

The chamber said high compliance costs and the lack of accredited facilities remain barriers for exporters, particularly the small and medium enterprises (SMEs). It proposed accrediting selected university laboratories to the ISO 17025 standards, reimbursing 50 percent of the certification costs through the Export Development Board and introducing low-interest loan schemes. 

To encourage value addition and innovation, it suggested tax-free export profits for products with more than 60 percent local value addition, triple tax deductions for research and development (R&D), product innovation and sustainability practices and the creation of a government-backed R&D fund to co-finance the partnerships between industry and academia.

With the SMEs struggling to access affordable finance, the chamber urged the creation of a Sri Lankan Export-Import Bank and double tax deductions for investments in technology, capacity expansion and sustainability. For floriculture and horticulture, it recommended an online permit system under the Forests Department as well as training and incentives to develop professional capacity. In the mineral sector, it proposed calculating royalties at mine gate value, standardising mining licences for 15 to 20 years and introducing a single-window clearance system.

The NCE asserted the shortage of both skilled and unskilled labour has become one of the most pressing challenges for the exporters, cutting across every sector. It noted difficulties in recruiting machine operators, technicians and trained staff, with high turnover and migration of skilled workers worsening the situation. Women’s participation in the workforce was also constrained by limited access to affordable housing and childcare facilities. 

To address the problem, the chamber proposed establishing government-run export skill training centres, factory-based training programmes with allowances, low-interest housing loans and childcare support for the export sector workers and incentives for companies to train and retain staff.

“The export sector is the engine of Sri Lanka’s economic growth. Our proposals are practical, impactful and focused on removing structural bottlenecks that hinder competitiveness. 

While we have highlighted the issues faced by a few key sectors, the majority of our recommendations are cross-cutting and relevant to all exporters. If implemented, they will strengthen the existing exporters, attract new investments and create the much-needed employment opportunities,” said NCE President Indhra Kaushal Rajapaksa.

According to NCE Secretary General and CEO Shiham Marikar, the proposals were drawn from the inputs of the members and sectoral heads, representing the real challenges the exporters face on the ground. 

“A common theme across every industry is the shortage of both skilled and unskilled labour, which must be addressed immediately if Sri Lanka is to compete globally. With the right policy support, the exporters can not only boost foreign exchange earnings but also ensure Sri Lanka builds a skilled workforce and positions itself as a competitive hub in the international marketplace.”

The chamber noted that adopting its proposals would streamline trade facilitation, reduce bureaucratic inefficiencies, strengthen the global presence of Sri Lankan brands, cut costs through local testing and certification support, encourage value addition, innovation and sustainability, empower the SMEs with finance and market access and most critically, resolve the labour shortage by creating a skilled and motivated workforce.