📈 IPS Study: Unlocking High-Value Agribusiness & Agrifood Export Potential in Sri Lanka

A new study by the Institute of Policy Studies (IPS) highlights the critical role of the agrifood sector and identifies key export growth opportunities through high-value agriculture and processing. • Economic Contribution: Primary agriculture contributes 8.3% to GDP, while the broader agrifood sector accounts for 24.5% of GDP and 42.0% of total national employment. • Output Multiplier: Food & beverage manufacturing generates US$ 1.85 in total economic output for every US$ 1 of final demand, compared to US$ 1.20 for primary agriculture. Agriculture supplies 38% of food processing inputs, while food processing sources 19% from domestic agriculture. • Export Clusters: Identified 6 high-potential export sectors: • Coconut-based products: Exceeded US$ 1 Bn in 2025. • Fruit & vegetable processing: Growth of 302% over the past decade. • Seafood: Sustained strong growth backed by GSP+ market access. • Other key clusters include cinnamon, spices (pepper, vanilla), and tea. • Key Bottlenecks & Recommendations: Sector growth is limited by complex tariffs, policy uncertainty, low R&D investment, and insufficient value-addition support. IPS recommends expanding high-value, export-oriented processing to boost global competitiveness, create higher-productivity jobs, and foster industrialization.