Sri Lanka accelerates export reforms as President chairs second EDCM meeting

President Anura Kumara Disanayake 

• Announces series of new policy measures and infrastructure initiatives to push towards $ 36 b target by 2030
• Reviews progress on 10 priority initiatives; several near completion
• EDB reports full ITRS rollout for export services, near-finished tariff review for electronics, railway test facility upgrades, cargo scanner installation at Katunayake and higher bank guarantee ceiling for overseas construction from $ 1 m to $ 5 m
• New measures to expand Freeport to 60 operators, develop Trincomalee Harbour as marine hub, scrap $ 200 OPL levy at Galle and Hambantota
• Agriculture duty set-offs for poultry, spices, boost gem and jewellery exports, aid tea smallholder replanting
• Sector reforms include; lift pharma brand limit, remove 18% VAT on packaging, promote renewable energy in high-power exporters
• Coconut industry target $ 2.5 b exports by 2030 via targeted imports and Northern plantations 
• President orders creation of Investment Facilitation Committee, faster implementation and monthly progress tracking

President Anura Kumara Disanayake on Tuesday chaired the second Export Development Council of Ministers (EDCM) meeting at the Presidential Secretariat, announcing a series of new policy measures and infrastructure initiatives aimed at propelling Sri Lanka towards its $ 36 billion annual export revenue target by 2030. 

The high-level session reviewed the progress on 10 priority export facilitation initiatives identified during the inaugural meeting in January, with several reaching advanced stages of implementation.

During the meeting, the Export Development Board (EDB) reported significant achievements, including the full rollout of enhanced data collection systems for export services such as education, marine, and offshore industries through the Central Bank’s International Transaction Reporting System (ITRS). Key advancements include a near-completion review of import duties and para tariffs in the electrical and electronics sector, proposals for tariff reforms submitted to the National Tariff Policy Committee, infrastructure upgrades with railway testing facilities for locally manufactured power trains, and the introduction of scanner technology at Katunayake Air Cargo Village. 

Financial facilitation efforts have also progressed, with steps underway to increase the bank guarantee ceiling for overseas construction projects from $ 1 million to $ 5 million.

Among the newly approved measures, the President endorsed expanding Freeport services with a target of 60 operators within three years, developing Trincomalee Harbour into a marine business hub with ship repair facilities and waiving the $ 200 Off Port Limits (OPL) levy at Galle and Hambantota Ports. 

Agricultural exports will benefit from duty set-off schemes for poultry raw materials, spice imports for value addition and re-export, increased gem and jewellery exports, and financial aid for tea smallholder replanting.

In addition, sector-specific reforms include removing the three-brand name restriction in pharmaceuticals, fast-tracking the removal of the 18% Value-Added Tax (VAT) on packaging materials, and promoting renewable energy use among high-power-consuming export companies. In the coconut industry, the Government aims for $ 2.5 billion in exports by 2030 through targeted import permissions and plantation expansion in the Northern region.

President Disanayake also called for the urgent formation of an Investment Facilitation Committee to streamline export-oriented investment approvals and attract foreign direct investment. 

He instructed Ministries to fast-track all approved initiatives and submit monthly progress reports.

“Our exporters are the backbone of the economy,” the President said. “By removing bottlenecks, modernising infrastructure, and diversifying markets, we can secure Sri Lanka’s place as a competitive player in global trade.”

Sri Lanka’s export sector demonstrated resilience in the first half of 2025, recording total exports of $ 8.35 billion, up 6.88% year-on-year (YoY). Merchandise exports accounted for $ 6.50 billion (+5.72% YoY), while services exports rose sharply to $ 1.86 billion (+11.13% YoY). Coconut-based products saw growth of over 32%, and apparel and textiles recorded an 8% increase. Key markets, including India, the Netherlands, Hong Kong, and Singapore, posted double-digit growth.

The meeting was attended by Plantation and Community Infrastructure Minister Samantha Vidyarathna, Rural Development, Social Security and Community Empowerment Minister Upali Pannilage, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, Western Province Governor Hanif Yusoof, Defence Ministry Secretary Air Vice Marshal (Retd.) Sampath Thuyacontha, the Secretaries of the relevant Ministries, including Industries Ministry Secretary Thilaka Jayasundara, Board of Investment (BOI) of Sri Lanka Chairman Arjuna Herath, and EDB Chairman Mangala Wijesinghe, along with senior officials from the Sri Lanka Ports Authority, the EDB, and the BOI.