Export Expansion and Diversification in Sri Lanka: Towards a New Paradigm?

After the disastrous consequences of the anti-export bias and import substitution polices, Sri Lanka, since 1978, has implemented many strategies and programmes to promote export oriented industries and agriculture. Nevertheless the country’s export performance during the four decades that have ensued has been disappointing. This is partly due to the widespread violence and disturbances which discouraged foreign investors and buyers. In spite of this lackluster performance, a few initiatives and a couple of sectors have proved successful. This includes the performance of the apparel sector and the establishment of export processing zones.