02/06/2026
A recent study on Sri Lanka’s export competitiveness examined how the country compares with Asian economies, including India, Bangladesh, Pakistan, Thailand, and Vietnam during the period 2007–2023.
The research explored a key question:
“What are the main factors affecting Sri Lanka’s export competitiveness, and how does the country compare with its regional trading partners?”
The findings show that Sri Lanka continues to face major structural challenges such as low productivity, inflation volatility, weak institutional conditions, and limited export diversification. These issues have reduced the country’s ability to compete effectively in global markets.
Using estimates of the Composite Export Competitiveness Index (CECI), the study found that broader economic stability, labour productivity, and export performance are the strongest drivers of competitiveness. The research also examined sector-specific strengths using the analytical methods of international trade and identified eleven promising sectors with strong potential for targeted development and policy support.
The study further analyzed how factors such as governance, trade policy, productivity, and institutional quality influence export performance across the region. Sri Lanka’s performance was benchmarked against successful export-oriented economies in South and Southeast Asia to identify lessons and policy insights that could support future growth.
The research recommends a dual-track policy approach focused on:
• improving macroeconomic stability,
• increasing labour productivity,
• strengthening trade and institutional frameworks,
• upgrading industries and export sectors, and
• improving Sri Lanka’s integration into regional and global trade networks.
Overall, the study highlights the importance of export-led growth as a national priority for Sri Lanka’s long-term economic resilience, industrial development, and global competitiveness.
This study is a GCF funded research, and can be accessed below: https://shorturl.at/GY7Tk
