Sri Lanka targets US$36 billion in exports amid investment hurdles

Sri Lanka is working to bolster its economy through improved foreign investment and a strategic export framework. A recent United States assessment notes that while the country is recovering from an economic crisis and maintaining stability through IMF programs, investors face persistent hurdles. These include regulatory unpredictability, bureaucracy, policy changes, and difficulties with land acquisition and contract enforcement.

Foreign direct investment reached approximately US$1.06 billion in 2025, representing about one percent of GDP, which remains below the levels seen in many emerging economies. Despite these challenges, the country offers advantages such as 100 percent foreign ownership in most sectors and proximity to major shipping routes.

To drive growth, the Sri Lanka Export Development Board and the Ministry of Industry and Entrepreneurship Development have initiated the National Export Development Plan (NEDP) 2026–2030. This plan aims to increase total exports, including merchandise and services, to approximately US$36 billion by 2030. The strategy focuses on enhancing competitiveness, diversifying markets, improving logistics, and strengthening institutional coordination to achieve these targets.