Labour shortages, weak SME base threaten SL’s 2026 export targets: Exporters

Sri Lanka’s export community is warning that the labour shortages and limited participation of small and medium enterprises (SMEs) could become binding constraints on the country’s export ambitions in 2026, even as the earnings continued to grow and authorities prepare a fresh multi-year push to expand global market reach.
Sri Lanka’s export earnings rose 5.6 percent year-on-year in 2025 to US $ 17.25 billion, reflecting what the officials described as continued positive growth. 
Yet, the exporters cautioned that the labour availability and skill gaps across the industries, compounded by an ageing workforce and long-term impact of labour migration, could pose a major challenge in meeting the future targets.
These concerns took the centre stage at the first National Chamber of Exporters (NCE) council meeting for 2026. The meeting brought together the representatives of 34 of the 40 sectors within the NCE membership.
Addressing the council as a special invitee, EDB Chairman Mangala Wijesinghe said the board, in collaboration with the Asian Development Bank, has finalised the National Export Development Plan 2025-2029, outlining the priorities to enhance trade competitiveness, expand Sri Lanka’s presence in regional and global markets and promote sustainable export growth.
He said the strategy would focus on market and product diversification, digitalisation initiatives including the long-awaited National Single Window and renewed exporter development efforts at regional level through designated district officers.
Wijesinghe also announced plans to revive the Sri Lanka Expo after more than a decade, describing it as a key platform to support export promotion, attract buyers and investors, expand the exporter base and strengthen the existing exporters.
“We must increase the number of exporters,” he said, noting that the SMEs currently account for only 7-8 percent of Sri Lanka’s total export value, far below the global benchmark of around 25 percent. He urged the exporters to support the effort by bringing “good buyers and good investors” to Sri Lanka.
NCE President Indhra Kaushal Rajapaksa welcomed the initiatives and reaffirmed the chamber’s full backing for the EDB’s direction, citing progress on free trade agreements (FTAs), export development plan and trade facilitation reforms.
“I assure you of the support and cooperation of the NCE,” he said, adding that the chamber is ready to work closely with the EDB on the upcoming initiatives, particularly the Sri Lanka Expo.
Rajapaksa also said the NCE’s Aspiring Exporters programme aligns with the EDB’s district-level outreach and confirmed the chamber’s willingness to coordinate with the district officers to strengthen exporter development across regions.
During the council discussion, the members raised the need for sufficient funding to support export strategy implementation and called for earlier communication on trade fairs and exhibitions, allowing the exporters adequate preparation time.
On the FTAs, the exporters urged the authorities to involve the industry stakeholders earlier in negotiations, noting that information is often shared only at the later stages. The members also highlighted the importance of structured training for the emerging exporters to keep pace with the evolving global trade practices and compliance requirements.