Government aims for higher trade revenues with expanded FTAs, MSME support

By Nuzla Rizkiya

As Sri Lanka looks to generate higher revenues via trade, the government yesterday unveiled a more aggressive trade strategy under a five-year National Export Development Plan (2025-2029). 

The key policy shifts aimed at strengthening the country’s export base and global trade competitiveness came under fresh spotlight yesterday at Budget 2025.

President Anura Kumara Dissanayake noted that as part of the strategy, the micro, small and medium enterprises (MSMEs) would receive greater support to penetrate new export markets, expand the existing ones and integrate into the global value chains.

“The MSMEs will be facilitated to tap into new export markets, expand the existing markets or integrate into the value chains of large-scale exporters and global supply chains,” Dissanayake said.

A major policy overhaul will also see the introduction of a new tariff framework designed to ensure the exporters have greater access to high-quality and affordable raw materials. 

In addition, Sri Lanka is looking to deepen its free trade agreements (FTAs), particularly with the ASEAN nations, by engaging with the Regional Comprehensive Economic Partnership and other trade deals.

To attract greater investment, the government aims to expand its network of Double Taxation Avoidance Agreements beyond the existing 44 pacts, prioritising the countries with high trade and investment potential.
“A new Customs Law will be introduced to enhance trade facilitation and revenue collection,” Dissanayake said.
The push for export growth will also be driven by economic diplomacy, with the government looking to professionalise Sri Lanka’s diplomatic missions to strengthen global trade relations. Dissanayake stated that the Sri Lankan expatriates would be leveraged for enhanced access to overseas business networks, commercial opportunities and collaborations with the Sri Lankan exporters.

Digital transformation will be another key pillar, with the government accelerating efforts to automate and integrate border agencies and exporter registration through the Trade National Single Window.

The US $ 19 billion export target announced in the budget surpasses the earlier projection of US $ 18.2 billion for 2025, made by the Export Development Board (EDB). Last month, EDB Chairman Mangala Wijesinghe forecasted merchandise exports to hit US $ 14 billion, while the service exports were expected to grow to US $ 4.2 billion in 2025.