News Today: Sri Lanka’s Exports Growth and Free Trade Agreement Negotiations

In a recent press briefing, Sri Lanka’s Minister of Industries and Entrepreneurship Development, Sunil Handunneththi, revealed significant plans to enhance the country’s export sector. According to the Minister, the government is targeting an increase in export revenue to USD 19.5 billion, up from the current USD 16.5 billion. This goal aligns with the value of the loan Sri Lanka received from the International Monetary Fund (IMF).

Handunneththi discussed the country’s potential to boost its exports by USD 3 billion through various strategies, including the improvement of local industries. The government has already taken steps to merge salt factories in Elephant Pass and Karative, with the goal of producing 30,000 MT of table salt. This comes in response to a current salt shortage, and the government is seeking Cabinet approval to import salt through a competitive bidding process.

In addition to improving domestic production, Handunneththi emphasized that Sri Lanka aims to export white salt once the necessary infrastructure is in place. He also expressed confidence that the USA’s planned tariff increases will not negatively impact Sri Lanka’s exports. Instead, the Minister views the situation as an opportunity for Sri Lanka to capture new markets due to the unique nature of its products.

The government also plans to present a new customs duty policy in Parliament shortly. In terms of international trade, Sri Lanka is seeking to enter into several Free Trade Agreements (FTAs), particularly with countries such as Korea, Japan, and those in the Middle East. Furthermore, Handunneththi highlighted the ongoing negotiations with India to revise the existing Free Trade Agreement between the two countries.

With Sri Lanka’s trade portion in foreign markets remaining relatively small, the government aims to increase its presence and competitiveness on the global stage. Additionally, the Minister mentioned a project to convert graphite from the Kahatagaha Graphite Mine into graphene, a move that could further diversify Sri Lanka’s export offerings.