Sri Lanka Expands FTA to Boost Exports, Forex.
With global demand steadily rising and new trade agreements in progress, the government has set a clear target of boosting apparel exports to \$8 billion by 2030. This ambitious goal reflects not only the sector’s resilience but also Sri Lanka’s broader vision of strengthening its economy through sustainable export-led growth and competitiveness.
The move, according to senior officials, is aimed at diversifying the nation’s export markets while also bolstering much-needed foreign exchange reserves.
He emphasized that market diversification is not just a policy choice but a necessity if Sri Lanka is to build a competitive and resilient export sector.
Abeysinghe underlined that FTAs with new regions and economies will open doors to broader opportunities for local exporters. “Expanding our trade partnerships will not only help diversify the range of products we export but also strengthen Sri Lanka’s integration into global supply chains,” he explained. According to him, the government’s vision goes beyond merely selling goods abroad—it is about creating long-term sustainability by adding value to products and establishing stronger brand recognition for ‘Made in Sri Lanka’.
Abeysinghe pointed out that apparel exports generated more than \$5 billion in 2024, with the government now setting its sights on raising that figure to \$8 billion by 2030. This ambitious target reflects the administration’s determination to leverage the global demand for quality apparel while simultaneously enhancing the livelihoods of thousands of Sri Lankan workers who depend on the industry.
While economic reforms dominate much of the government’s agenda, another major policy initiative has drawn significant public attention—the decision to repeal the Presidents’ Entitlements Act No. 4 of 1986. This law, in place for decades, provided former presidents and their widows with a host of benefits and privileges, often at a heavy cost to the state.
According to government disclosures earlier this year, more than Rs 1.1 billion (around \$3.7 million) was spent in 2024 alone on benefits for former presidents. This revelation sparked public debate about fairness, accountability, and the burden on taxpayers at a time when the nation has been battling economic hardships.
In response, the Cabinet of Ministers on July 22 approved the publication of a draft bill to repeal the Act. If passed, this legislation would end the longstanding system of entitlements, effectively stripping away perks that included allowances, housing, vehicles, and other privileges provided to former leaders and their families.
The move is being hailed by many as a bold step toward greater fiscal responsibility and transparency. It also aligns with the government’s policy declaration, “Pohosath Ratak – Lassana Jeewithayak” (Prosperous Nation – Beautiful Life), which pledges to reduce unnecessary state expenditure and promote accountability at the highest levels.
Observers note that this initiative carries both symbolic and practical value. On one hand, it sends a strong message that no individual, regardless of position, is above the need for economic sacrifice during times of recovery. On the other, the funds saved could potentially be redirected toward pressing priorities such as healthcare, education, or infrastructure development.
For ordinary Sri Lankans, both reforms—the expansion of FTAs and the repeal of the Presidents’ Entitlements Act—speak to a broader narrative of change. After years of financial turbulence, including the economic crisis that gripped the nation in recent times, people are yearning for policies that focus on stability, fairness, and long-term growth.
While challenges remain, the government’s twin-track approach—stimulating exports through new global trade opportunities and cutting down on unnecessary domestic expenditure—marks a turning point. As Abeysinghe and other officials continue to emphasize, the ultimate goal is not just short-term relief but building a foundation for a more resilient and prosperous Sri Lanka, where accountability is prioritized and opportunities are expanded for all.