Reviving the Economy

Rizvi Zaheed moots developing agro-value chains to boost Sri Lanka’s exports

Q: How would you describe the recent performance of Sri Lanka’s agriculture exports?

A: Sri Lanka has significant strengths when it comes to agricultural exports particularly in value added products but the sector has been limited in its capacity to exploit opportunities in global markets due to several constraints.Key issues include agro-productivity, sustainable supply and market development.

Nevertheless, agricultural exports have achieved success particularly in developing value added products and channel development. This is largely due to the efforts of pioneering companies and innovative agro-entrepreneurs, with the support of institutions such as the Export Development Board (EDB), the National Chamber of Exporters (NCE) and agriculture sector associations.

Q: With agriculture being identified as a thrust sector in rebuilding the economy, how can this be translated into growing its export potential?

A: Given the global trends, Sri Lanka must aggressively develop agro-value chains for identified key crops.

To this end, productivity has to be increased immediately through higher yielding seeds and planting materials, rapid upgrading of agro-crop production technologies, food processing technologies, and market identification and development.

Most exporters have to fend for themselves; the SME sector is especially hard-pressed to invest in the required technologies and infrastructure to ramp up agro-exports. Government policy must incentivise investment in food processing and cold storage.

Moreover, procedures for importing high quality and high yielding seeds and planting materials should be simplified.

Q: Is the present export strategy acceptable – and what more is required from a policy angle?

A: The National Export Strategy (NES) is a good starting point but immediate action must be taken to remove procedural impediments. I believe that support for locating sus­tainable customers through coll­aborations with foreign trade chambers and Sri Lankan over­seas missions would provide a strong boost.

Q: Are technological developments adequately leveraged by the local agriculture industry?

A: Agriculture technology is at an early stage and inadequate to fuel the required transformation.

The cost of required agro-technologies is a major factor, and must be supported by better utilisation of programmes periodically implemented by international agencies such as the World Bank and the Asian Development Bank (ADB).

Q: What lessons can Sri Lanka learn from its global counterparts in this regard?

A: We don’t need to reinvent the wheel since proven agro-technologies have been introduced in many countries in the developed and developing world. What’s required is to adapt and use these technologies, for which the necessary facilitative policies and programmes must be in place.


Q: Which markets hold the most promise for Sri Lanka’s agriculture exports?

A: Sri Lanka has competitive strengths in serving global markets – from the US and Europe, to Asia and Australia – but supply chain constraints make it critical to prioritise and select niche markets and segments that are both profitable and sustainable.

In the wake of COVID-19, demand has increased for nutritious and immunity boosting food. Sri Lanka has a selection of crops in terms of its spice range, superfood such as moringa, jackfruit, virgin coconut oil, yams, and tropical fruits and vegetables. Europe and the US hold much promise for such value added nutritious superfood.

Sri Lanka is capable of meeting the required quality standards and must focus on market channels that offer premium prices. Within Europe, there are segments such as ethnic markets based on Asian cuisine, which offer huge potential but require focussed market development efforts.

In Asia, Sri Lanka has established a platform for high quality value added food products in countries such as Japan that can be leveraged on for scaling up volumes. Traditional export markets in the Middle East also offer opportunities for high nutrition-based value added fruits and vegetables.

Sri Lanka offers much promise in linking local and regional agro-value chains in India, Bangladesh, Myanmar and East Africa, along with markets in Europe and the US. This collaborative approach would help meet the volume needs of global customers and be a game changer for Sri Lankan agriculture.

Rizvi Zaheed is a Director of Vidullanka, the Chairman of Oceanpick and the Chairman of Sri Lanka Agripreneurs’ Forum – he was interviewed by Zulfath Saheed.