Sri Lanka can boost exports through high-value agriculture: IPS study

Sri Lanka's agrifood sector represents a critical pillar of the national economy, with primary agriculture alone contributing 8.3 percent of Gross Domestic Product, according to research released by the Institute of Policy Studies. The broader agrifood value chain, encompassing production, processing, distribution and retail activities, accounts for an even larger share of economic output and employment across the island.

The study identifies high-value agriculture and agro-processing as priority areas for unlocking export growth and generating increased foreign exchange earnings. Shifting toward premium agricultural products and value-added processing could position Sri Lanka more competitively in regional and international markets, the research suggests.

Current export patterns in the agrifood sector remain heavily concentrated in traditional commodities. The IPS analysis points to underutilized opportunities in specialty crops, organic production, and processed agricultural goods that command higher prices and profit margins in global markets.

The research underscores the potential for coordinated policy interventions and private sector investment to transform Sri Lanka's agribusiness landscape. Developing supply chains, improving post-harvest infrastructure, and enhancing food safety standards are identified as key enablers for export expansion and sector modernization.