📈 Sri Lanka Needs 'Friction-Free Ecosystem', Not Master Plans for Growth

An opinion piece by the KIK Group Chairman argues that Sri Lanka must shift from rigid central planning to removing regulatory friction to drive foreign exchange (FX) inflows, citing successful global structural models. • The Failure of "Export More": Traditional sectors like tea, rubber, and apparel & textiles face deep domestic constraints. The state's habit of drafting complex 5-year macro plans and fixing arbitrary targets has failed to bridge the multi-billion-dollar FX gap. • Global Models of Facilitation: - Vietnam: Doubled its total exports in six years by eliminating red tape, automating customs in Free Trade Zones, and offering tax-free intermediate inputs for re-export. - Thailand & Türkiye: Turned healthcare into billion-dollar inward FX engines. Türkiye nets US$ 2 Bn to US$ 3 Bn annually in medical FX by streamlining e-visas, integrated transit, and zero-tariff medical equipment imports. • Key Recommendations for Sri Lanka: - Trade: Establish friction-free Free Trade Zones with instant digital customs for rapid value-addition and re-export trade. - Services: Fast-track dedicated medical and specialized visas to draw foreign spending directly into local service institutions. - Policy: Ensure 100% policy predictability and eliminate sudden retroactive taxes to let entrepreneurs organically target global market gaps.