By: Staff Writer
December 07, Colombo (LNW): Sri Lanka’s export sector is grappling with a new wave of pressures after Cyclone Ditwah triggered widespread disruptions across supply chains, raw-material zones, and industrial districts. Although the Export Development Board (EDB) projects that earnings could climb to USD 16–17 billion in 2025—one of the strongest performances in years—the cyclone has exposed structural weaknesses that threaten long-term growth.
The country had only recently begun shaking off a decade-long stagnation, with exports stuck between USD 13–15 billion. New policy reforms, revived advisory committees, and performance-linked targets created optimism for expansion toward the USD 20 billion mark. But the disaster has hit several pillars of export production: tea factories lack power, cinnamon and coconut plantations face crop losses, rubber tapping has slowed, and apparel factories in flood-affected districts have suspended operations.
Even exporters outside the disaster-hit zones are experiencing delays due to damaged transportation networks, which have slowed container movement to ports. Rising logistical costs and disrupted supply timelines have already prompted concerns from foreign buyers, especially in apparel and rubber-based industries.
The cyclone’s impact is particularly severe for small and medium exporters, who make up the majority of the export base but lack the financial resilience of larger firms. Many SMEs report machinery damage, flooded warehouses, and the loss of raw materials. Without concessional financing or targeted recovery grants, some may not return to full capacity for months.
Still, the EDB argues that the overall trajectory remains positive, pointing to expanded product development, new export-market access, and stronger engagement with overseas missions. The government is also preparing a major industrial exhibition to attract international buyers. But experts warn that promotional efforts alone cannot offset production-level vulnerabilities.
The cyclone has reignited debate over the country’s dependence on traditional exports—tea, garments, rubber, cinnamon—and its slow pace in diversifying into high-value sectors such as electronics, pharmaceuticals, and advanced manufacturing. The disaster also underscored the absence of climate-resilient infrastructure in export-dependent districts, despite repeated environmental shocks.
Economists note that reaching USD 20 billion in exports will require more than targets and marketing campaigns. Sri Lanka must urgently modernise logistics, improve rural transport, support SME upgrading, and integrate disaster-risk management into export-sector planning.
Cyclone Ditwah may have interrupted momentum, but it has also provided a defining opportunity: to rebuild the export sector with resilience, diversification, and stronger foundations—or risk another lost decade.
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