President targets $ 6 b export boost from coconut, food, rubber and tea

President Anura Kumara Dissanayake yesterday reviewed an ambitious push to transform four key export industries into major foreign exchange earners, targeting up to $ 6 billion over the coming years. During separate discussions at the Presidential Secretariat yesterday with industrialists representing the coconut, food and beverage, rubber and tea sectors, the President pledged policy support, investment incentives and regulatory reforms to accelerate the country’s shift towards an export-oriented economy. He outlined the Government’s strategy to strengthen domestic manufacturing and increase value-added exports as part of the National Export Development Plan (NEDP) 2026–2030. The immediate target is to develop the coconut and food and beverage industries into a combined $ 3 billion export sector within two years, with coconut-based exports expected to reach $ 2 billion and food and beverage exports $ 1 billion. The President said the Government was prepared to provide every possible incentive needed to diversify exports and promote higher value-added production, stressing that Sri Lanka must strengthen domestic industries to overcome its foreign debt burden and reduce reliance on international financial institutions.“Our objective is to build the economy into an export-oriented production economy,” he said, noting that countries which successfully transformed their economies had done so by integrating domestic production with export markets. President Dissanayake said Government support would be directed towards businesses willing to invest, compete internationally and generate higher net dollar earnings rather than merely increasing gross export values. A key focus throughout the discussions was the need to maximise value addition while minimising imported inputs. The President noted that the gap between foreign exchange spent on importing raw materials and export earnings from finished products must be carefully managed to ensure exports generate meaningful net inflows. Among the immediate policy measures discussed were streamlining imports of raw materials required for export production, while safeguarding domestic producers, simplifying production processes, improving data collection on production trends and strengthening domestic supply chains. It was also agreed in principle to provide incentives for industries establishing operations in the Northern Province, including support for coconut-based manufacturing facilities, as part of efforts to broaden regional industrial development. Industry representatives, however, highlighted several structural constraints limiting export growth. Rubber manufacturers revealed that domestic production currently meets only about 50% of national raw material requirements, despite the industry’s substantial export potential to reach $ 3 billion by 2030 with greater value addition. Land shortages, labour constraints and limited cultivation were identified as major obstacles, prompting discussions on expanding rubber cultivation into Monaragala and Uva Wellassa, while encouraging greater participation by low-income communities. Manufacturers also raised concerns over increasing tyre imports, arguing that they are undermining Sri Lanka’s domestic tyre manufacturing industry despite its strong production capabilities. Tea exporters, meanwhile, warned that ongoing geopolitical tensions in the Middle East have increased shipping times and export costs, particularly affecting exports to Iran, one of Sri Lanka’s most important tea markets. Exporters urged Government intervention to resolve financial issues surrounding the longstanding “Oil for Tea” barter arrangement with Iran. The sector also called for greater support for over 480,000 smallholder tea growers, who account for the bulk of national tea production, including concessions on fertiliser and planting material to improve productivity. Across industries, exporters identified delays in VAT refunds as one of their biggest operational challenges, prompting discussions on accelerating refunds and introducing joint awareness programmes by the Finance Ministry and the Inland Revenue Department (IRD) to improve compliance and ease administrative bottlenecks. Industrialists also requested faster adoption of research innovations, reforms to legal constraints affecting production and stronger policy coordination to improve competitiveness.

President targets $ 6 b export boost from coconut, food, rubber and tea | Daily FT