Monday Nov 17, 2025
Monday Nov 17, 2025
Tuesday, 16 September 2025 05:27 - - {{hitsCtrl.values.hits}}
The National Chamber of Exporters (NCE) yesterday said it has submitted proposals for the 2026 Budget seeking reforms to strengthen exports, attract investment, and boost competitiveness. It said the measures would streamline trade, strengthen Sri Lankan brands, cut compliance costs, promote value addition and innovation, expand SME financing, and address labour shortages by building a skilled workforce.
The Chamber said the recommendations reflect the outcome of extensive consultations with NCE members and sector heads, ensuring they capture the real challenges and aspirations of exporters across industries.
While sector specific reforms have been suggested for areas such as minerals, floriculture, and horticulture, the Chamber stressed that the majority of proposals are cross cutting measures that apply broadly across all export industries.
Exporters continue to face delays and high costs due to inefficient procedures and outdated systems. To address these issues, the NCE has called for the installation of a modern cargo scanner at the Katunayake Export Processing Centre and the introduction of a single window digital system for exporter registration and renewals.
In relation to branding and market access, the Chamber noted that Sri Lankan exporters often lose value by supplying under foreign labels.
To build stronger brand equity, it has proposed Government backed liability insurance and tax concessions for brand building, the fast tracking of trademark registration, Sri Lanka’s accession to the Madrid Protocol, and the prelaunch of the Export Development Board’s Brand Development Program alongside global campaigns to showcase Sri Lankan quality.
The Chamber also highlighted the challenges exporters face in meeting standards, certifications, and testing requirements. The high cost of compliance and the lack of accredited facilities are particularly difficult for small and medium enterprises.
The NCE has recommended the accreditation of selected university laboratories to ISO 17025 standards, the reimbursement of 50% of certification costs by the EDB, and the establishment of low interest loan schemes to help exporters meet these requirements.
On value addition and innovation, the Chamber argued that exporters require more incentives to move up the value chain.
It has proposed tax free export profits for products with more than 60% local value addition, triple tax deductions for research and development, product innovation, and sustainability practices, as well as a Government-backed research and development fund to co-finance partnerships between industry and academia.
Access to affordable finance remains a major obstacle, especially for SMEs. The NCE has urged the creation of a Sri Lankan Export Import Bank and called for double tax deductions for investments in technology, capacity, and sustainability.
The Chamber has also put forward sector specific proposals. For floriculture and horticulture, it has recommended an online permit system for the Department of Forests, coupled with training and incentives to develop professional capacity.
In the mineral sector, it has suggested a shift in royalty calculation to mine gate value, the standardisation of mining licenses to 15 to 20 years, and the introduction of a single window clearance system.
A recurring theme in the proposals is the severe shortage of both skilled and unskilled labour, which the NCE identified as one of the most pressing constraints faced by exporters. Industries report increasing difficulties in recruiting machine operators, technicians, and trained staff, while high turnover and the migration of skilled workers have exacerbated the problem.
The Chamber also pointed to the limited participation of women in the workforce, citing the lack of affordable housing and childcare facilities as major barriers.
To address these challenges, the NCE has proposed the establishment of Government run export skill training centres, factory-based training programs with allowances to encourage participation, low interest housing loans and childcare support for export sector workers, and incentives for companies to train and retain their workforce.
NCE President Indhra Kaushal Rajapaksa said: “The export sector is the engine of Sri Lanka’s economic growth. Our proposals are practical, impactful, and focused on removing structural bottlenecks that hinder competitiveness.”
He added: “While we have highlighted issues faced by a few key sectors, the majority of our recommendations are cross cutting and relevant to all exporters. If implemented, they will strengthen existing exporters, attract new investments, and create much needed employment opportunities.”
NCE Secretary General and CEO Shiham Marikar also underscored the urgency of addressing the labour issue. He said: “Our proposals are drawn from the inputs of our members and sector heads, representing the real challenges exporters face on the ground”.
Marikar added: “A common theme across every industry is the shortage of both skilled and unskilled labour, which must be addressed immediately if Sri Lanka is to compete globally. With the right policy support, exporters can not only boost foreign exchange earnings but also ensure Sri Lanka builds a skilled workforce and positions itself as a competitive hub in the international marketplace.”
The NCE said that adopting these proposals would streamline trade facilitation and reduce bureaucratic inefficiencies, strengthen the global presence of Sri Lankan brands, reduce costs for exporters through local testing and certification support, encourage value addition, innovation, and sustainability, empower SMEs with access to finance and markets, and most critically resolve the labour shortage by building a skilled and motivated workforce.
Confederation of MSMI commends Govt.’s support; wants greater focus on R&D in 2026 Budget
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| MSMI Founder President Nawaz Rajabdeen |
The Confederation of Micro, Small and Medium Industries (MSMI), has commended the Government for its continued efforts to uplift micro, small, and medium enterprises (MSMEs), tourism, and agriculture sectors that form the backbone of the national economy.
In a statement MSMI Founder President Nawaz Rajabdeen said the Government has taken many positive steps in recent years to strengthen entrepreneurship, expand market opportunities, and encourage business activity across rural and urban communities. “We sincerely appreciate the initiatives already introduced to empower entrepreneurs and create a more supportive business environment,” he added.
Building on this progress, Rajabdeen highlighted the importance of further strengthening research and development (R&D), an area in which Sri Lanka currently lags behind regional peers. He explained that enhancing R&D would not only help entrepreneurs adopt modern, sustainable practices but also make Sri Lankan products and services more competitive in global markets.
“As a partner in the Government’s vision for growth, we looked at where further improvements could be made. Our research indicates that investment in R&D is an area with great potential to transform key sectors such as MSMEs, tourism, and agriculture. By prioritising this in the upcoming budget, Sri Lanka can accelerate innovation, job creation, and sustainable growth,” he said.
To support this, the Confederation of MSMI has proposed measures including increasing R&D investment to at least 1% of GDP, creating sector-focused innovation funds, promoting public-private research partnerships, and providing financial and technical support for entrepreneurs.
Rajabdeen reaffirmed that the Confederation remains committed to working closely with policymakers, development partners, and the private sector to ensure that Sri Lanka’s entrepreneurs are fully equipped to contribute to a more resilient and inclusive economy.
“Together, by building on the strong foundation already laid, we can unlock the full potential of our entrepreneurs and secure a brighter future for Sri Lanka,” he added.
