National Chamber of Exporters Sri Lanka President Jayantha Karunaratne called for urgent reforms to strengthen the country’s export sector during his address at the 32nd NCE Export Awards, which took place in Colombo last Friday. He highlighted the pressing need for innovation, competitiveness, and sustainability to overcome the challenges faced by the industry.
Karunaratne emphasized the importance of transparency and accountability in regulatory processes, urging the government to eliminate delays in patent funds and adopt a single-window system to streamline operations and boost efficiency. Speaking to an audience of industry leaders and stakeholders, Karunaratne stressed the necessity of empowering Sri Lanka’s missions and programs, rebuilding global confidence in Sri Lankan products and addressing the adverse effects of economic instability. He identified rising production costs and the current tax structure, which imposes a 30% tax on profits, as significant barriers to investment and innovation.
“Our regional competitors, such as India, Vietnam, and Bangladesh, offer exporters easier access to loans from 60 countries, giving them a distinct advantage in the global market. To remain competitive, Sri Lanka must adopt similar policies to encourage inclusivity and growth in the export sector,” Karunaratne said.
He called for liberal reforms to foster a dynamic workforce, improved access to international trademark administration, and greater support for SMEs and startups, which are crucial drivers of export growth. The devaluation of the Sri Lankan rupee down 10% over the past yearand the uncertainty surrounding the removal of the SVAT system were highlighted as ongoing concerns. Additionally, rising energy and credit costs continue to strain exporters.
Karunaratne assured attendees that the National Chamber of Exporters (NCE) is actively working with stakeholders such as the Export Development Board, Ministry of Industries, and Ministry of Finance to develop actionable solutions. These include stabilizing the currency, reforming the tax structure, and prioritizing research and development initiatives. In his closing remarks, Karunaratne urged the government to prioritize the export industry as a national imperative, emphasizing that strategic reforms could help Sri Lanka increase foreign exchange earnings, boost GDP, and create sustainable employment opportunities.
“With the right policies and support, Sri Lanka can significantly expand its global export footprint and achieve ambitious trade targets,” Karunaratne concluded, expressing optimism for the country’s economic future.
THUSHAN JAYASURIYA