Sri Lanka’s export sector is recording encouraging growth in high-value electrical and electronic products, but mounting regulatory obstacles, delayed legislative reforms, import-related complications and tightening international trade requirements threaten to undermine the industry’s expanding competitiveness. The concerns raised by the National Chamber of Exporters of Sri Lanka (NCE) have exposed a widening gap between the country’s export ambitions and the institutional support available to businesses expected to generate urgently needed foreign exchange.
At its Council meeting on October 20, 2026, the NCE reviewed a series of unresolved issues requiring government intervention, highlighting how administrative delays and regulatory uncertainty continue to complicate exporters’ operations. Among the most pressing concerns is Sri Lanka’s prolonged failure to implement the Madrid Protocol, an international trademark registration system that would enable local businesses to protect their brands across multiple overseas markets through a streamlined procedure.
The Madrid System, administered by the World Intellectual Property Organization (WIPO), covers 117 members representing 133 countries and more than 80 percent of global trade. With over 1.7 million registered trademarks, it provides an important mechanism for businesses seeking international brand recognition and protection.
Although the National Intellectual Property Office (NIPO) has reportedly indicated that the final draft will be submitted to Parliament for approval, the continuing delay raises questions about the country’s preparedness to provide exporters with internationally competitive intellectual property protection.
For smaller exporters attempting to establish their own brands overseas, the absence of an effective international registration mechanism can mean additional legal expenses, complicated applications and lost commercial opportunities. In an increasingly competitive global marketplace, protecting intellectual property is no longer an administrative luxury but an essential component of export development.
The electrical and electronic components industry provides another example of the opportunities potentially being compromised by regulatory and institutional shortcomings. Exports in this category increased by an impressive 57.49 percent year-on-year during January-August 2026, reaching US$440.31 million. August earnings alone amounted to US$62.4 million, supported by a 30.83 percent increase in insulated wires and cables.
However, exporters continue to encounter difficulties relating to government procedures, import restrictions and market-access requirements. The NCE has sought intervention from relevant authorities and is pursuing discussions with the Indian market’s regulatory authorities over difficulties arising from India’s Bureau of Indian Standards Quality Control Orders (BIS-QCOs).
The Chamber has also raised restrictions affecting the forest sector and requested a documented action plan from the Ministry of Environment. Its continuing discussions with the Inland Revenue Department over VAT refunds further underline the financial pressures exporters face when tax-recovery procedures become prolonged.
These concerns expose a fundamental weakness in Sri Lanka’s export-development strategy: celebrating export growth cannot substitute for removing the operational obstacles confronting businesses.
If the Government genuinely intends to increase export earnings, it must move beyond promotional campaigns and address delays in legislation, inconsistent regulations, market-access barriers and inefficient administrative procedures.
The challenge is particularly urgent as exporters confront increasingly demanding international standards. Without coordinated institutional support, Sri Lanka risks losing the competitive advantage created by its emerging high-value manufacturing industries.
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