The 1st of August, 2024, marks the 45th anniversary of the Sri Lanka Export Development Board (EDB). The EDB was established in 1979 with the objective of establishing a strong government-level institutional framework to develop and promote Sri Lanka’s exports in order to integrate with the global economy consequent to the adoption of liberal economic policies in 1977, and it has been at the vanguard in terms of promoting and developing exports in Sri Lanka for over four decades.
Before Sri Lanka embraced open economic policies in 1977, its economy had predominantly relied on plantation crops in terms of export income. However, with the liberalisation of the economy post-1977, the Island has diversified its export portfolio to become a reliable supplier of apparel, high-quality spices, gems and jewellery, coir products, footwear and leather, rubber-based products (such as gloves and tyres), etc. It has also become a sought-after destination for software development, IT services as well as Business Process Outsourcing functions due to its highly skilled labour force. The country’s merchandize export income, which was US$ 845.1 million in 1978, progressed to US$ 11,911 million in 2023. The EDB, as the nation’s premier export promotion agency, from its formation in 1979, played a pivotal role in this transformation through its numerous untiring initiatives such as organizing Sri Lankan country pavilions in international trade fairs, conducting training programmes, implementing government sponsored-assistance schemes, undertaking skills and technology upgradation, executing SME assistance activities addressing exporter issues, etc.
Evolving to meet the nation’s requirements
Over the last four decades, the world has evolved at a rapid pace. Identifying the necessity to adapt to the developments brought about by globalization, technological advancement, and the progress of the country, the EDB too has transformed its scope, focus, as well as the nature of activities to stay in pace with the ever-changing business and commercial environment, both locally and globally. Realising the tremendous potential Sri Lanka has got in the provision of services, a special focus is given to promote sectors such as ICT/BPM, Electronics and Electrical components, Wellness Tourism, Construction, Education Services, and Marine and Offshore services. In yet another manifestation of the Board’s virtue of responding to the timely requirements of the country’s economy, it developed the National Export Strategy (NES 2018-2022) which empowered the emergence of new export industries and services beyond the established export industries of apparel, tea, gems and rubber. The Boat Building, Spices and Concentrates, Food and Beverages, ICT/BPM, Electronics and Electrical components, and Wellness Tourism were recognized as the focus sectors under this strategic plan. While four dedicated trade support functions were identified to facilitate all the sectors including the focus sectors.
Furthermore, in order to extend the EDB’s services across the country, the Regional Development division was setup together with four regional offices in the Southern, Northern, North-Western, and Central provinces. The EDB has also given a special focus to areas such as the development of women entrepreneurship and SMEs over the last decade in cognizance of Sri Lanka’s socio-economic priorities.
The EDB is also among Sri Lanka’s premier public sector agencies which promotes Organic Agriculture in Sri Lanka. Given the growing global demand for Organic Food and Sri Lanka’s potential to emerge as a reputed supplier of Organic Food products due to its fertile land and rich bio-diversity, the National Organic Control Unit (NOCU) was formed within the EDB in 2014 to standardise the Organic Farming activities in Sri Lanka. The National Organic Certification Mark (NOCM), which was developed by the EDB, was made public last year. The NOCM provides an assurance of organic food quality and standardisation to build trust amongst consumers while verifying that the products satisfy the requirements of the National Organic Standard (NOS) SLS 1324:2018. The Board has also implemented several assistance programmes to enable farmers and processors in Sri Lanka to obtain organic certification as per the NOS. Every year, the EDB organises a Sri Lankan country pavilion at BIOFACH - which is held in Germany and considered as the world’s largest annual organic trade show.
Landmark achievements
Marking a moment of historical significance, Sri Lanka received its first ever Geographical Indication (GI) certification when the European Union (EU) Commission on 02nd February, 2022, granted GI status to Ceylon Cinnamon. The outcome was a result of a painstaking, decade-long, arduous endeavour led by the Sri Lanka Export Development (EDB) with the support of numerous public and private stakeholders. GI registration enables to differentiate Ceylon Cinnamon in the EU market from its substitutes of lower quality. It also serves as a source of competitive advantage which will help to increase market differentiation, product turnover and allow for a premium price from the consumer.
Demonstrating its competency and excellence internationally, the EDB accomplished another valued achievement by becoming Runner-up at the World Trade Promotion Awards - 2022 under the category of Best initiative for inclusive and sustainable trade for its SME Export Coaching programme, which was conducted in late 2021. This award ceremony recognized innovative programmes launched by Trade Promotion Organisations that helped small firms to benefit from opportunities in the international trade at a time of uncertainty. The organizations had to demonstrate that their initiatives assisted micro, small and medium-sized enterprises to become competitive in international markets.
Looking forward to the future
Following the unprecedented and most severe economic crisis in Sri Lanka’s post-independence history, a gradual economic revival can be observed due to the prudent and timely policy adjustments implemented by the Government. As the island finalises external debt restructuring and forges ahead towards economic progress, exports are anticipated to play a critical role within the realm of socio-economic development.
In the journey towards becoming a developed nation by 2048, the EDB is determined to serve the nation by undertaking its role as the nation’s apex export promotion agency to propel an era of hope and prosperity.
