Business Model Makeover

Exporters adapt to challenging conditions through digital initiatives

Compiled by Lourdes Abeyeratne

Across the world, export oriented businesses have adopted various measures to ensure their continued operation despite the challenges posed by the COVID-19 pandemic and consequent lockdowns.

Similarly, Sri Lanka’s export industries have embraced various technologies to maintain their ability to compete on a global scale while seminars and programmes have been conducted to promote digital adoption.

Ranging from virtual AGMs to the adoption of digital processes and platforms, many export oriented companies across the country have been prompted to reconsider their business models.

The acceleration in digitalisation has also been observed among Sri Lanka’s well-established exporters such as the tea industry with the implementation of virtual auctions.

This change to a fundamental aspect of the industry could impact areas such as marketing, innovation, plantation management and others, according to experts and commentators alike.

Meanwhile, a digital platform has been launched to support the apparel industry through the provision of real-time data and supply chain transparency. Open to industry participants – including retailers, brands, manufacturers and suppliers – the platform aims to increase trust and reduce operating costs while providing data driven insights for decision making.

In Sri Lanka’s logistics sector, the onset of the coronavirus prompted South Asia Gateway Terminals (SAGT) to introduce a paperless electronic clearance process for imported containers at its terminal in the Port of Colombo. Enabling digital submission of clearance documents, this initiative offers scope for greater efficiency in the pursuit of a contact-less import process in the country.

Furthermore, the adoption of blockchain technologies is set to digitise manual paper-based and time-consuming administrative processes. This process is expected to help accelerate the digital transformation of Sri Lanka’s shipping industry while reducing operating costs, driving efficiency and improving the customer experience.

Digitalisation efforts have not been restricted to implementations within these industries. In a bid to support the export sector, the Ceylon Chamber of Commerce entered into an agreement to integrate an online marketplace into its e-commerce platform, enabling exporters to connect with other parties in the value chain.

Similarly, the National Chamber of Commerce of Sri Lanka (NCCSL) introduced an online platform to enable Sri Lankan businesses to promote their products and services in the global market, providing a boost to exporters such as those in the IT-BPM (business process management) industry.

Moreover, a survey conducted by the Ceylon Chamber of Commerce and United States Agency for International Development (USAID) reveals that the digitalisation of government services particularly at border agencies were among the main interventions requested by exporters.

Measures such as Sri Lanka Customs’ electronic registration of customers – including importers and exporters, shipping agents and freight forwarders among others – are expected to streamline and automate trade.


In addition to these initiatives, there are numerous opportunities for exporters to leverage on technology.

The Former World Bank Country Director for the Maldives, Nepal and Sri Lanka Dr. Idah Pswarayi-Riddihough has noted that the nation’s export sector could grow to become a sizeable segment with sufficient investment.

Similarly, various government officials have called for a greater focus on value added agricultural exports rather than exporting in bulk.

While digital transformation has been recognised for its ability to potentially help drive Sri Lanka’s growth over the years, given the challenges presented by COVID-19, a number of the country’s export oriented industries have been prompted to adopt and incorporate technology in their operations over a short period, enabling them to remain connected to global value chains and support the sector’s gradual recovery.

As the former Chairman of Sri Lanka Association of Software and Service Companies (SLASSCOM) Ranil Rajapakse asserted not long ago, companies that continue to invest in upskilling talent, IT modernisation and digital transformation will be better positioned for growth, and to serve customers in the post-COVID era.