Govt. eyes long-term plan to tackle export sector challenges

The government is looking to craft a longterm industrial development plan as Sri Lanka is moving towards establishing itself as an export-led economy, the President’s Office said.

President Anura Kumara Dissanayake yesterday chaired a high-level discussion at the Presidential Secretariat with the senior officials from the Industry and Entrepreneurship Development Ministry, Finance Ministry and his office. “There was a long discussion about the government’s plan to move towards an exportdriven product economy, strengthening local production,” the President’s Media Division said in a statement.

The discussion also focused on setting up a long-term industry development plan to overcome the challenges. The export sector, particularly apparel, which is a critical foreign exchange earner, is under pressure, following the recent announcement of a 44 percent reciprocal tariff by the US government. This development poses significant risks to Sri Lanka’s export competitiveness in one of its largest markets. Sri Lanka is currently engaged in its second in-person meeting aimed at strengthening the bilateral trade relations with the US. Ahead of this visit to Washington, D.C., a high-level meeting was convened under Dissanayake’s leadership to ensure the country’s interests are well represented.

The discussion focused on aligning the Sri Lankan delegation’s approach with the country’s broader economic strategy in tariffrelated talks, following an invitation extended by the Office of the United States Trade Representative. The officials at the meeting included Industry and Entrepreneurship Development Minister Sunil Handunnetti, Deputy Minister Chathuranga Abeysinghe, Finance Ministry Secretary Mahinda Siriwardana, Industry Ministry Secretary Thilaka Jayasundara, Senior Additional Secretary to President Russel Aponsu and other top government officers. The latest data from the Export Development Board showed that total exports for the first four months of the year stood at US $ 5.52 billion, up 6.9 percent from a year earlier.

In April, Sri Lanka’s export engine gathered pace, marking an 8.74 percent year-on-year growth, with earnings reaching US $ 1.29 billion. Driving April’s performance was a 12 percent uptick in merchandise exports, clocking in at US $ 983 million. Apparel led the charge, bringing in US $ 364.4 million, up 13.5 percent from a year ago, with improved orders from the US and Europe. For the year so far, it is noteworthy that exports to India have risen nearly 40 percent to US $ 324.4 million, highlighting the changing trade flows in the region.