Wednesday Jun 24, 2026
Wednesday Jun 24, 2026
Wednesday, 24 June 2026 00:08 - - {{hitsCtrl.values.hits}}
Dilmah Ceylon Tea Company Chairman DilhanC. Fernando
CEAT Kelani Holdings Managing Director/CEO Ravi Dadlani
By Charumini de Silva
Sri Lanka’s leading exporters have endorsed the Government’s ambitious plan to boost exports to $ 36 billion by 2030, but warned that success will hinge on policy consistency, stronger global market access, supply chain reforms, and a decisive shift towards premium, value-added products rather than competing on volume.
Speaking at a panel discussion during the launch of the National Export Development Plan (NEDP) 2026-2030, Dilmah Ceylon Tea Company Chairman Dilhan C. Fernando and CEAT Kelani Holdings Ltd., Managing Director/CEO Ravi Dadlani outlined that Sri Lanka’s export future lies in leveraging quality, sustainability, and innovation rather than attempting to emulate manufacturing giants such as Vietnam and India.
Fernando said the country already possesses most of the ingredients required to achieve the NEDP’s ambitious export targets, but stressed that Sri Lanka must build its strategy around its unique strengths.
“Sri Lanka must recognise that its competitive advantage is different from countries such as Vietnam. Our focus should be on value rather than volume,” he said.
He pointed to products such as Ceylon Tea, Ceylon Cinnamon, and Ceylon Cashew, arguing that the country’s export success will depend on premium positioning, branding, and quality differentiation rather than price competition.
“In the US market, Sri Lanka cannot compete with cassia on price. However, authentic Ceylon Cinnamon has unique characteristics that can command a premium if properly marketed and protected,” Fernando said.
He warned that achieving such positioning would require significant investment in testing facilities, certification systems, and quality infrastructure, noting that many exporters still incur substantial costs by sending samples overseas for advanced testing.
Fernando also highlighted growing risks from evolving European regulations, insisting Sri Lankan exporters must rapidly strengthen traceability, sustainability, and responsible sourcing systems to maintain market access.
“The EU’s evolving regulatory framework increasingly requires exporters to demonstrate sustainability, traceability, and responsible sourcing throughout their supply chains,” he said.
He called for targeted support programs to help businesses comply with emerging standards, particularly in agriculture, where climate resilience and traceability are becoming prerequisites for accessing premium markets.
Meanwhile, Dadlani cautioned against direct comparisons with regional competitors, arguing that Sri Lanka’s challenge is fundamentally different due to the smaller scale of its economy.
“Comparing Sri Lanka directly with Vietnam or India is difficult because the scale of those economies is vastly different,” he said.
However, he welcomed the NEDP’s emphasis on expanding beyond traditional export sectors, describing diversification as critical to sustaining long-term growth.
For Dadlani, the biggest determinant of success will be whether the Government can maintain policy stability over several years.
“The strategy is sound, but its success depends on maintaining policy stability over the next four to five years,” he said.
He cited CEAT’s post-crisis investments in Sri Lanka as evidence that investor confidence remains intact despite global uncertainties and domestic economic challenges.
“From our own experience, confidence in Sri Lanka remains strong. One of the largest post-crisis investments in the manufacturing sector came from India, with significant investment in new facilities. This demonstrates that investors continue to see opportunities in Sri Lanka despite global challenges,” he added.
At the same time, Dadlani warned that weaknesses in domestic supply chains could constrain future growth, pointing specifically to the decline in Sri Lanka’s rubber production, which has forced manufacturers to depend increasingly on imported raw materials.
“This is an area where coordinated support from institutions and policymakers will be crucial,” he said.
Both business leaders also pointed to deeper structural reforms needed to support export expansion.
Fernando argued that exporters, particularly small and medium enterprises (SMEs), continue to face excessive bureaucracy and fragmented institutional support.
“Exporting should not be a process that requires entrepreneurs to navigate multiple institutions and bureaucratic hurdles,” he said.
He also called for stronger links between universities, research institutions, and industry, noting innovation and commercialisation remain underdeveloped despite Sri Lanka possessing significant research capabilities.
Fernando highlighted Sri Lanka’s limited network of trade agreements as a major disadvantage compared with competitors such as Vietnam.
“Compared with countries such as Vietnam, Sri Lanka has far fewer free trade agreements. Expanding preferential market access is essential if we are serious about achieving export diversification and value addition,” he said.
They also said success should be measured not only by export earnings, but by the transformation of the economy itself.
Dadlani said he would view the NEDP as successful if it attracts substantial investment into new export industries, while delivering measurable progress on policy commitments.
Fernando, meanwhile, said Sri Lanka has an opportunity to turn rising global sustainability standards into a competitive advantage.
“If our exports can successfully position themselves around quality, traceability, geographical indications, and sustainability, then we can achieve premium market positioning and long-term growth,” he said.
