In the heart of the Indian Ocean lies Sri Lanka, an island nation renowned for its history, culture, and natural beauty. Traditionally, Sri Lanka's export market has thrived on a few select commodities — textiles, tea, and rubber. Together, these exports form the cornerstone of the nation’s trade and economic structure.
However, Sri Lanka’s export products have begun to diversify in recent years in response to global market demands and a shift towards newer business opportunities. According to a report on Newswire with statistics from the Sri Lanka Export Development Board, the following exports saw the largest year-over-year (YOY) growth from 2022 to 2023: boat building (351%) and fruits (14%). For Sri Lankan businesses within these industries, these developments herald a wealth of international export opportunities, offering a chance to take your business from local to global.
The fastest growing export markets in Sri Lanka
Sri Lanka's journey towards economic diversification is being spearheaded by the remarkable growth of several non-traditional export sectors. They are:
1. Boat building
The boat building industry in Sri Lanka saw an unprecedented growth of exports, 351% YOY from 2022 to 2023. Largely driven by Sri Lanka’s strategic geographical location at key marine crossroads in the Indian Ocean, growing technological capabilities in boat building and drydock services, as well as the potential for nautical tourism.
Currently, approximately 20 to 25 active boat yards operate across the country, manufacturing a wide range of vessels and providing direct employment for around 2,000 people, with an additional 10,000 indirect jobs. With most yards operating at only 50% capacity, there's significant potential to double production and employment in the near future, highlighting significant export business opportunities.
Sri Lanka’s boat builders produce an array of maritime products, including multipurpose platform supply vessels, crew boats, passenger vessels, and fishing vessels, serving a global clientele from the USA to Europe, India, Mauritius and the Maldives, making it one of the best sectors to explore international export opportunities in Sri Lanka.
2. Fruits
Sri Lanka’s fruit exports grew 14% YOY from 2022 to 2023, reflecting the country’s burgeoning agri-export market. Traditionally, the nation has had robust food exports of other products like tea, herbs and spices, but the global craving for exotic fruits has opened new doors for Sri Lankan farmers and exporters.
Among the bounty of fruits that Sri Lanka offers to the global market, native varieties such as the king coconut and the Dambulla mango have captivated international taste buds, showcasing the rich diversity of the island's produce. A research report by Hector Kobbekaduwa Agrarian Research and Training Institute showed that amongst the fruit exports, avocados have emerged as the star performer, exhibiting the highest growth rate, while papaya and pineapple continue to remain popular.
The primary markets soaking up this tropical abundance include Qatar, the Maldives, the UAE, Germany, and France, indicating a broad international appeal and highlighting the international export opportunities for Sri Lankan fruits into varied culinary landscapes worldwide.
Understanding the global demand for Sri Lanka’s export items
Consumer preferences for uniqueness, quality, and sustainable sourcing fuel the surge in global demand for Sri Lanka's export products. This opens plenty of international export business opportunities for Sri Lankan companies to showcase their offerings, from the bespoke craftsmanship of boat building to the organic cultivation of tropical fruits.
By leveraging digital marketing and forming international partnerships, these businesses can effectively tap into the global market. Emphasising the distinctiveness and sustainability of their products can allow Sri Lankan businesses in these sectors to broaden their market reach by satisfying the world’s growing appetite for distinctive and ethically produced goods.
