Sri Lanka cannot achieve sustained export growth and attract large-scale investment by relying solely on its domestic market. As a small economy, our future lies in deeper integration with regional and global value chains.
Speaking at the Pathfinder Foundation Roundtable on “Sri Lanka, RCEP and the Emerging Global Trading Order”, I highlighted the significant opportunities that the Regional Comprehensive Economic Partnership (RCEP) presents for Sri Lanka.
RCEP connects 15 economies, including Japan, South Korea, Australia, New Zealand, China and ASEAN member states, collectively accounting for nearly 30% of global trade. Access to such a market would create new opportunities for Sri Lankan businesses, particularly our Small and Medium Enterprises (SMEs), which currently contribute only around 10% of national exports.
However, Sri Lanka is at least a decade behind in implementing many of the reforms required to fully participate in modern global trade. Recognizing this challenge, the Government is now moving forward with several critical reforms:
✅ A new tariff policy to improve competitiveness and eliminate barriers to trade
✅ Transparent and predictable investment criteria
✅ Investment facilitation reforms to improve the ease of doing business
✅ New legislation including the Public-Private Partnership (PPP) Act and SOE reforms to strengthen investor confidence
✅ Measures to improve investment protection and unlock new sources of capital, including venture capital and angel investment funds
Trade agreements are not only about exports. They are also about attracting investment. Investors seek locations that provide access to larger regional markets. By strengthening our connectivity with East Asia, India, the Middle East and Africa, Sri Lanka can position itself as a competitive hub for trade, manufacturing and services.
Our exports currently stand at approximately USD 17 billion and have grown only gradually over the years. Expanding market access through bilateral and multilateral agreements, while continuing domestic reforms, is essential if we are to achieve our long-term economic ambitions.
The Ministry of Foreign Affairs, Ministry of Trade, and Ministry of Industries and Entrepreneurship Development are working together to advance these reforms and create new opportunities for Sri Lankan businesses and entrepreneurs.
The journey towards economic transformation requires openness, competitiveness and stronger global partnerships.
#RCEP represents an important opportunity in that direction.