Op-ed/Special Reports

Sri Lanka’s GI and IP advantage

Dilani Hirimuthugodage

Thursday April 30, 2026 3:27 pm

By Dilani Hirimuthugodage

Thursday April 30, 2026 3:27 pm

– Geographical Indications (GI) can unlock higher export earnings by leveraging origin‑based values in tea, spices, and other agricultural products.

– GIs enhance global recognition, secure premium prices, and access niche markets through branding and value addition.

– Targeted GI reforms are essential to build a more resilient, value‑driven export economy.

With Sri Lanka’s export competitiveness steadily declining in major destination markets amid global economic uncertainty, the need to explore innovative tools for sustaining export growth has become urgent. Improving export competitiveness is essential for robust growth. One powerful, yet often underutilised, tool in this effort is the country’s intellectual property rights (IPR) system.

Sri Lanka stands at a critical juncture as the international community marks World Intellectual Property (IP) Day in April. In an increasingly competitive global environment, countries cannot compete on volume alone. They must instead compete on value, capitalising on consumers’ willingness to pay a premium for products with unique qualities. This is where IPRs play a vital role.

Geographical Indications (GI) are a tool for safeguarding the intellectual property of unique export products. They assure consumers and traders that the product comes from a specific place and has unique qualities, characteristics, or a reputation linked to that origin. Through certification, GIs enable premium prices for origin-based products such as tea, spices, and other agricultural goods while protecting the reputation of products from counterfeits.

Sri Lanka’s Strength in Origin-Based Agricultural Exports

Sri Lanka is globally renowned for its high-quality agricultural products, including tea, cinnamon, and other spices, coffee, king coconut, cashew, and regional fruits like Malwana Rambutan and Karthakolomban Mango. Yet, many of these products are still exported as raw commodities without adequate branding, leaving them vulnerable to price fluctuations and intensifying competition from similar products.

Agricultural exports in Sri Lanka have accounted for approximately 20–24% of total export earnings over the past five years. Tea alone accounted for 51% of agricultural exports and 10.9% of total exports in recent years. Sri Lanka ranked third in the world for tea exports in 2024. The highest percentage of the country’s tea exports goes to Middle East countries (43%), mainly Iraq, the UAE, Turkey, and Iran; 22% to Commonwealth of Independent States (CIS); 4% to China; and 3% to the USA. Further, Sri Lanka was ranked as the 15th most important exporter of spices in 2023 and continues to dominate the global market for true cinnamon, supplying 90% of the world’s demand, while also ranking highly for pepper, cloves, nutmeg, and coffee.

GI Success and Sri Lanka’s Edge

International experience shows that GI certification can significantly boost exports and expand market reach. For example, Cambodian Kampot pepper moved beyond niche markets after GI recognition in 2010, with production nearly doubling by 2017 and exports rising by over 250%. Similarly, Indonesian Muntok White Pepper experienced a tripling of exports by 2014 after obtaining GI status in 2010, highlighting how GI status can strengthen global market penetration.

Sri Lanka exhibits a strong comparative advantage across its key agricultural export commodities, as reflected in Revealed Comparative Advantage (RCA) values that consistently exceed unity. Ceylon Cinnamon, Ceylon Tea, and other major spice exports demonstrate remarkable specialisation, with high RCA values.

Figure 1: Agriculture Export Competitiveness

Source: Author calculations based on International Trade Center (ITC) data & WITS data

Market penetration, a ratio that indicates how widely a country exports a product, for Ceylon tea and spices, has fluctuated across key export markets, reflecting shifting demand and intensifying global competition. For spices, some markets such as Mexico and Peru show consistently high penetration levels, performance in Europe remains moderate, while markets like the USA and UAE indicate some decline.

At the same time, emerging markets such as China are absorbing increasing shares, suggesting new opportunities for expansion.

Looking ahead, Sri Lanka can target emerging middle-class markets that pay premium prices for quality, origin-certified products by leveraging GIs to enhance branding, authenticity, traceability, and export competitiveness.

Why Sri Lanka’s GI Potential Remains Underutilised

Despite Sri Lanka’s strong comparative advantage and globally recognised products, the GI system remains underutilised due to several challenges, particularly low awareness among agricultural value chain stakeholders and inconsistent practices among smallholders, collectors, processors, and exporters. Strengthening the system requires improved coordination across the value chain, with a strong emphasis on effective traceability, monitoring, and control from farm to consumer.

Moreover, Sri Lanka’s GI system faces significant challenges, including weak IP enforcement against the misuse of geographical names, institutional fragmentation, inadequate inter-agency coordination, and the absence of a dedicated GI framework aligned with international standards.

Sri Lanka currently lacks a dedicated GI division within the National Intellectual Property Office (NIPO), leading to limited clarity in guidelines and product classification. There is also no nationally recognised GI logo to support product differentiation and build consumer trust. In addition, the absence of a publicly accessible online GI registry reduces transparency within the system.

As a result, Sri Lanka is not yet fully capturing the value associated with the unique origin and reputation of its agricultural commodities.

Unlocking the Economic Value of GIs: From Legal Reform to Market-Led Growth

At present, the global demand favours traceable and authentic products, giving GIs an edge. Feasible steps to strengthen Sri Lanka’s GIs include launching targeted awareness and marketing campaigns to educate both producers and consumers about their value and supporting joint government–industry marketing initiatives.

Sri Lanka can strengthen its GI system by aligning with international best practices through the establishment of a dedicated GI unit within NIPO, supported by clear guidelines and product classification, along with the introduction of a national GI logo to improve branding, product differentiation, and consumer trust. Moreover, it is essential to enforce stricter penalties and improve market surveillance against the misuse of the name.

This is a timely opportunity to reflect on the strategic role of IPRs in improving Sri Lanka’s export competitiveness. By effectively leveraging its origin-based strengths through a well-functioning IP system, Sri Lanka can transition towards a high-value, resilient export economy, ensuring that its unique agricultural heritage translates into sustainable growth and global recognition.

Markets

Sri Lanka stocks close down 0.60-pct, dragged by HNB and LOLC

Friday November 13, 2026 3:28 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

The ASPI was down 133.22 points at 22,024.18, while the more liquid S&P SL20 was down 1.06 percent, or 67.55 points, at 6,298.02.

The ASPI ended the week up 784.53 points from last Friday.

Positive contributors to the ASPI were Dialog Axiata (up 0.40 percent at 50.20 rupees), Distilleries Company of Sri Lanka (up 0.52 percent at 58.30 rupees), Aitken Spence (up 3.60 percent at 151.00 rupees), Ceylon Tobacco Company (up 1.05 percent at 1,828.50 rupees), and LOLC Finance (up 1.96 percent at 5.20 rupees).

Hatton National Bank (down 1.88 percent at 403.75 rupees), Richard Pieris and Company (down 6.21 percent at 27.20 rupees), LOLC Holdings (down 2.17 percent at 405.00 rupees), Sampath Bank (down 1.91 percent at 154.00 rupees), and Singer (Sri Lanka) (down 2.40 percent at 77.30 rupees) were top negative contributors.

Market turnover was 3.23 billion rupees. Capital goods led turnover with 869.21 million rupees. (Colombo/Nov13/2026)

Economy

Sri Lanka MP slams budget speech for omitting Tamil national question

Friday November 13, 2026 2:56 pm

ECONOMYNEXT – A Sri Lanka legislator has voiced strong disappointment that the President’s budget speech failed to make a single mention of the Tamil national question.

“It is very unfortunate that in His Excellency the President’s speech, there has not been a single word mentioned about the Tamil national question. Not a single word,” Shanakiyan Rasamanickam said.

“A budget speech generally, is a policy direction of the government for the next year. The budget speech is not only a statement of the country’s fiscal position or the economy’s position. It is the country’s, the government’s, plan, or what the government plans to do the following year. That’s a policy statement.”

Former presidents would at least mention the Tamil question even if it was not resolved, he said.

Former President Ranil Wickremesinghe in his speech, in his policy statement, he would mention: “The Tamil national question must be resolved,” Rasamanickam said.

Former Presidents Maithripala Sirisena and Gotabaya Rajapaksa also mentioned that the national ethnic question must be resolved, he added.

“Every President, every country’s Head of State, in their policy statements, have acknowledged the fact that there is an unresolved national issue, the Tamil national question, that it needs to be resolved. Various governments have proposed various mechanisms; none of them have succeeded, but at least it was mentioned.”

This year’s budget made allocations for the Office of Missing Persons, and the Office of Reparations.

“But the domestic mechanism is a mechanism that the victim community has rejected. So you all are allocating money to a mechanism where the victim community is not going to be part of.”

Last year’s budget 1 billion was allocated to be spent on the Trincomalee and Jaffna airports.

“Where was that 1 billion for the Trincomalee and Jaffna airports spent last year?”

“The trajectory of this government, Honourable Deputy Speaker, is worrying to me. It’s really worrying to me. Because if the objective is to say that there is no Tamil national question, if the objective is to say that you all have resolved any ethnic issue that this country faced, then Honourable Deputy Speaker, then I think the Tamil people will teach this government a very, very, very harsh lesson in the future.” (Colombo/Nov13/2026)

Bonds & Forex

Sri Lanka sells extra Rs6.5bn Treasury bills after auction

Friday November 13, 2026 12:32 pm

ECONOMYNEXT – Sri Lanka has sold 6,500 million rupees of treasury bills offered on tap at an average rate of 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 85.562 billion rupees.

The issue offered 90 billion.

Total market subscription was 6.5 billion rupees.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (11) the debt office raised 79 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

The settlement date is November 13. (Colombo/Nov13/2026)

Construction and Real Estate

Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

Friday November 13, 2026 12:15 pm

ECONOMYNEXT — Sri Lanka’s Access Engineering PLC recorded a group net profit attributable to equity holders of Rs. 4.75 billion for the quarter ended September 30, surging 200 percent from Rs. 1.58 billion a year earlier, interim accounts showed.

Basic earnings per share rose to Rs. 4.08 for the September quarter, up from Rs. 1.58 previously.

Quarterly group revenue expanded 36 percent to Rs. 20.39 billion from Rs. 14.94 billion, underpinned by condominium property handovers — reflected in inventories dropping Rs. 7.69 billion since March to Rs. 35.71 billion — alongside strong automobile sales and steady civil engineering execution.

Cost of sales rose at a slower 27 percent to Rs. 14.34 billion, lifting gross profit by 64 percent to Rs. 6.05 billion and expanding gross margins to 29.7 percent from 24.7 percent.

Other income jumped 144 percent to Rs. 259.9 million, while administrative expenses rose 75 percent to Rs. 1.14 billion, leaving operating profit up 64 percent at Rs. 5.16 billion.

However, finance costs more than doubled, rising 107 percent to Rs. 1.18 billion on elevated group borrowings of Rs. 43.74 billion, partly offset by finance income climbing 302 percent to Rs. 42.2 million.

Share of results from equity-accounted investees rose 122 percent to Rs. 26.7 million, pushing pre-tax profit up 56 percent to Rs. 4.05 billion.

Income tax swung to a net reversal of Rs. 186.6 million from an expense of Rs. 804.1 million, boosted by deferred tax assets on unrelieved losses from a 100 percent enhanced capital allowance claimed by 60 percent-owned radiopharmaceutical subsidiary Access Medical Tracers (Private) Limited.

Total period profit rose 136 percent to Rs. 4.24 billion, with non-controlling interest declining 24 percent to Rs. 164.9 million following last year’s buyout of minority shareholders in Harbour Village (Private) Limited.

No separate exchange gain or loss was itemized in quarterly earnings, though foreign currency translation via associates recorded a Rs. 17.4 million loss in other comprehensive income, alongside USD 16.6 million in corporate guarantees.

Notes also flagged an expected Rs. 1.45 billion recovery from the terminated South Asia Commercial and Logistics Hub project, a Rs. 225 million post-quarter legal settlement already provided for, and a Supreme Court appeal over a 2011/12 PAYE tax ruling.

Group assets stood at Rs. 132.4 billion as of September 30, with net asset value per share at Rs. 46.70, as the Employees’ Provident Fund raised its stake to 5.69 percent.

Access Engineering shares closed at 80.00 rupees at the end of September and are currently trading around 85.80 rupees. (Colombo/Nov13/2026)

Economy

Sri Lanka private sector says timely implementation of Budget 2027 key

Friday November 13, 2026 11:43 am

ECONOMYNEXT – Private sector body, The Ceylon Chamber of Commerce, said it was encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline.

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory.”

The chamber also noted several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects.

“In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation.

“More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.”

The chamber said the budget contains positive measures aimed at enhancing competitiveness, and external sector resilience, while presenting opportunities for focus on sectors that can accelerate growth.

“A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors.

“These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises.”

The CCC said that more than 20 proposals submitted by it have been reflected in Budget 2027.

These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor programme with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital government services; and the promotion of cashless payments and broader digital adoption. The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimize underutilized agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters.

“The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy.

“The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth.” (Colombo/Nov13/2026)