📈 Sri Lanka Export Barometer: Policy Uncertainty & High Costs Strain Competitiveness

A recent survey by the Ceylon Chamber of Commerce (conducted Nov 2025 – Jan 2026) reveals that over 50% of exporters view Sri Lanka’s investment climate as worse than regional competitors, primarily due to regulatory instability. • Key Constraints: Exporters cited policy uncertainty, high energy prices, rising labour costs, and regulatory barriers as the primary hurdles to maintaining global competitiveness. • Strategic Adaptation: Despite challenges, the sector shows resilience through diversification: • 55% have identified new markets. • 28% are introducing new products to existing markets. • 27% are launching new products in entirely new markets. • 80% emphasize the critical importance of Free Trade Agreements (FTAs). • Industry Needs: Firms are calling for urgent digital reforms, including a National Single Window to streamline customs and port procedures. There is a strong demand for ICT integration, such as e-payments and traceability infrastructure, to meet global standards. • SME & Large Firm Outlook: Respondents highlighted the need for concessional financing and capacity building to retain skilled employees and foster innovation within the apparel, tea, and manufacturing sectors. _Note: Findings based on provisional survey data from 90 firms and 10 key informant interviews._