Chairman's speech 2025 - 2026

ADDRESSING THE 28^TH ANNUAL GENERAL MEETING OF THE EXPORTERS' ASSOCIATION OF SRI LANKA

Your Excellency, Carmen Moreno, Ambassador of the European Union,

His Excellency the Ambassador of Italy, Members of the diplomatic missions, distinguished members of the Exporters Association of Sri Lanka, dear guests, colleagues, and friends,

Good afternoon and thank you for attending the 28th Annual General Meeting of the Exporters Association of Sri Lanka. Appreciation is extended to the EASL membership for re-electing me as Chairman for the upcoming year.

The 28th Annual General Meeting convenes representatives from individual enterprises as well as trade associations, collectively accounting for a substantial share of the nation's merchandise and services exports. As the country pursues export-driven growth, EASL remains committed to its ongoing support of the national export sectors.

Sri Lanka’s Export Legacy

Sri Lanka has long been a nation of enterprise. From the ancient spice routes to today’s high-tech manufacturing and sustainable apparel, to world class ICT/BPM services, our exporters have consistently punched above their weight. We are a small island, yes—but one with a global footprint across a range of products and services. And that footprint is made possible by the tireless efforts of the men and women in this room.

We do, however, have a long way to go. Sri Lanka continues to experience a persistent and growing trade imbalance. Imports surged from $16.25 billion in 2023 to $18.58 billion in 2024, marking a significant increase of over 14%. On the other hand, exports rose only modestly from $11.95 billion to $12.23 billion, a mere 2.4% uptick. The country’s overdependence on imports, and the underlying challenges for exports do need to be addressed. The EASL will continue to work on the issues our exporters face, and we look to the support of the various Government departments in the room to help ensure that we clear the numerous roadblock that we exporters face.

Among the challenges faced last year was of course the removal of SVAT. As we draw closer to October 1st, we deadline we continue to work with the authorities on a fully digital refund system that will ensure the payment of VAT refunds well within the maximum of 45 days allowed by law. We also seek the clearing of old refunds, as a number of our members have very large refunds due, both in cash and in credit vouchers.

Other concerns include the application of para tariffs and the continued presence of the BOI negative list, both of which inflate construction costs for new factories and expansions. These barriers discourage investment and slow down infrastructure development. EASL will continue to push for the removal of these as early as possible.

In addition to our local shocks to the system, we have also had the issue of the reciprocal tariffs imposed by the USA and the massive uncertainties that have followed in the four long months since the “Liberation Day” announcements. We are extremely thankful to His Excellency, President Anura Kumara Dissanayake under whose guidance the negotiating team both in Sri Lanka and the USA have worked tirelessly to give Sri Lanka a tariff of 20% which is on par with that of our major competitor countries.

We believe this reflects the work done by the negotiating team and we remain hopeful that we can negotiate this rate further down, as we get to the conclusion of these discussions with the finalizing of an agreement with the USA.

As Sri Lanka looks to expand its markets beyond the traditional ones, recent events have demonstrated the need to have a dedicated team of experts tasked exclusively with the development of new trade agreements to allow our exporters better access to these new markets.

A Special Welcome to the EU Ambassador

Your Excellency, we are deeply honored by your presence here today. In these troubling times we wish to acknowledge the role that the GSP plus scheme continues to play in supporting the economy through access to the European Union. GSP plus remains the country’s biggest preferential trading agreement offering reduced tariff or zero tariff access to over 6,600 product lines from Sri Lanka. We are confident that the Government will meet the commitments given to the European Union and that we will continue to qualify for GSP plus as we go into the next round in 2027.

The European Union is not just one of Sri Lanka’s largest trading partners—it is a partner in values, in sustainability, and in shared prosperity. From apparel to tea, from ceramics to IT services, our exports to the EU reflect the best of Sri Lankan craftsmanship and ingenuity.

But beyond trade, the EU has been a steadfast supporter of Sri Lanka’s development journey—championing human rights, environmental stewardship, and inclusive growth. We thank you for your continued engagement and friendship.

Challenges and Opportunities

The past few years have tested us. Global supply chain disruptions, economic headwinds, and geopolitical shifts have reshaped the landscape. Yet, Sri Lankan exporters have adapted—pivoting to new markets, embracing digital transformation, and investing in quality and compliance.

As we look ahead, the opportunities are immense. The EU’s Green Deal and the CSDDD are just some of the upcoming pieces of EU legislation which will challenge Sri Lanka. And yet, these challenges could also become opportunities for the Sri Lankan exporter to the EU. We believe that Sri Lanka is among the leading countries in the ESG space, and if we get it right, could be an opportunity to leverage our sustainability initiatives to the benefit of the country. Given our history in ethical sourcing, and our commitment to carbon neutrality, this could new doors for Sri Lankan exporters who are ready to lead in sustainability. We look forward to working closely with the EU mission locally to understand how we can best navigate these waters.

The UK remains a strong market for the Sri Lankan exporter, both for goods and services. The recent launch of the UK Trade Strategy and with it the amending of the UKs DCTS scheme will allow greater access to the UK market for the Sri Lankan exporter. Our thanks to the UK Trade teams both in London and in Colombo for their efforts in this. Madam Ambassador, we look forward to a similar amendment to the EU scheme which will allow for better use of the scheme.

Sri Lanka needs to widen our trade beyond our traditional markets, seeking better sources of raw materials for our manufacturing enterprises, and a greater presence for both our goods and our service exports. The EASL is encouraged by the presence today of mission personnel from a number of overseas missions in Colombo and we look to your support in helping Sri Lanka’s export community grow its footprint overseas.

I like to also acknowledge the presence of His Excellency Mr Fiki, Deputy Ambassador for Indonesia who has graced us with his presence. Sir, Indonesia offers a excellent opportunity for the Sri Lankan Exporter and we thank you for your support of the export industry.

Over the past year, EASL has collaborated with institutions including Sri Lanka Customs, the Inland Revenue Department, the Export Development Board, and the Ministry of Finance. We appreciate their continued support.

To the EASL membership, I am very conscious of our obligation to deliver in value to you as an EASL member. We have a wide range of members across all sectors with an equally wide range of issues. The management committee would like to work closer with you to understand the pain points of your particular industry and to see how we can add value to you in addressing these issues. My humble request to you is that you stay engaged with the EASL management committee so we can have a better understanding of these issues and work with you to try and resolve these. As the export arm of the Chamber of Commerce, we should be able to address these issues with the relevant authorities.

In closing, we thank the Chamber for its ongoing support of EASL. Thanks to Buwaneka, Alikie, Shiran, and the team for your assistance. We appreciate the EIU unit's regular analysis and collaboration on EASL initiatives and extend special thanks to Sanjaya for consistently providing valuable support.

A sincere thank you also to the Chamber Secretariat for the support you provide, Nadeeni, having joined us mid-year, you have been an absolute pillar of strength both to the EASL and to me in the last year, thank you for that, and I look forward to continuing to work with you in the coming year.

As exporters, we commit to being ambassadors of Sri Lanka—delivering not just products and services, but trust, quality, and values. We commit to upholding ethical practices, empowering our workforce, and protecting our environment. And we commit to working hand in hand with our partners—local and international—to build a future that is prosperous, inclusive, and sustainable.

Your Excellency, distinguished guests—thank you for your presence, your partnership, and your belief in Sri Lanka. Together, let us chart a bold new course for our exporters, for our economy, and for our shared future.

Thank you and have a pleasant rest of the afternoon.