Photo: CFP

Sri Lanka is consolidating its status as a nation embracing sustainable and inclusive growth. Production growth and ensuring that economic growth benefits the population with fair equity are among the priorities. 

The trade policy aims to leverage Sri Lanka's geographic and industrial potential, integrating it further into global value chains while expanding traditional export sectors and entering new global markets, with a particular focus on enabling small and medium enterprises to access international markets.

Sri Lanka and China enjoy a longstanding history of mutually beneficial economic cooperation. Sri Lanka is an economic partner of the China-proposed Belt and Road Initiative. The Embassy of Sri Lanka has actively expanded Sri Lanka's export portfolio by introducing new products. In March, both China and Sri Lanka entered into eight Memorandum of Understandings. The MOU on Technical Cooperation in the Quarantine on Entry-Exit Animals and Plants between the two countries facilitates trading of high-quality produce between the two countries. Accordingly, Sri Lanka has successfully signed three protocols for Marine Fisheries, Ceylon Cinnamon and Fresh Pineapples with the General Administration of Customs of China (GACC) during the recent past.

Sri Lankan exporters are increasingly aligning with Chinese registration regulations for food and agricultural imports. Sri Lanka has prioritized the export of agri-based industries to attract foreign direct investments for further value addition. Sri Lanka is a niche producer of high-quality agricultural products due to its geographical position, favorable agro-climatic conditions and soil quality. Sri Lankan agri-products contain a high percentage of aromatic compounds that have become the most sought-after supplier in the global market. 

Sri Lanka is increasingly aligning with Chinese registration regulations for food and agricultural imports such as Ceylon Tea, Ceylon Cinnamon, Ceylon Pineapple, Ceylon Crabs and colored gemstones, particularly Blue Sapphires, in global markets

Under the BRI cooperation of international trade, Sri Lanka holds significant potential to become a key supply chain partner under the BRI agenda for shared prosperity in the next decade.

Accordingly, Sri Lanka can be a preferred sourcing destination for national brands, as highlighted below.

Ceylon Tea

Sri Lanka is known throughout the world as the "Tea Island," catering to the satisfaction of tea connoisseurs globally. The country is the third-largest tea exporter in the world, with an export share of approximately 15 percent in the global tea market. However, Sri Lanka is the undisputed leader in orthodox black tea production for the global community.

Black tea is categorized into orthodox and CTC varieties. Unlike CTC, which is a mass-produced variety, orthodox tea is a premium, artisanal product that requires skilled labor. Although Ceylon Tea accounts for only 5 percent of global tea production, the key factor is not the volume but the value. All foreign tourists who visit the tea country of Sri Lanka recognize the unique qualities of Ceylon Tea compared to competing origins.

While many tea-producing countries are adopting trendy automation for the plucking process to reduce costs, passionate Sri Lankans continue to use hand plucking—a highly skilled but labor-intensive method.

Due to the inherent character, flavor, and aroma of Ceylon Tea, demand in the Chinese market has increased over the past few years. In 2024, Sri Lanka exported 9.7 million kilos (up to October 31) of Ceylon Tea to China, with a value of nearly $48.9 million. Ceylon Tea is gaining popularity in the Chinese market due to its unique taste and health benefits. Notably, Sri Lanka is the leading supplier of tea to China among global producers. 

The Sri Lankan tea industry has recorded excellent performance during 2024, despite the many challenges faced by stakeholders. The total export revenue from tea for the period of January to October 2024 is $1.22 billion, with a total export quantity of 203 million kilos.

Ceylon Cinnamon

Ceylon Cinnamon is derived from the Cinnamomum zeylanicum Blume tree, which belongs to the Lauraceae family. It refers specifically to the cultivated species of cinnamon indigenous to Sri Lanka (Ceylon). 

Ceylon Cinnamon has a mildly sweet flavor and a citrus aroma with a hint of honey. Its color ranges from pale brown to slightly reddish, while ground cinnamon appears golden yellowish to brown. The bark is thin, delicate, and soft, giving the quills a breakable texture.

The unique selling point of Ceylon Cinnamon lies in the differences between it and Cassia, which is often used as a substitute for cinnamon but cannot match the aromatic compounds and health benefits of Ceylon Cinnamon. The flavor and fragrance of Ceylon Cinnamon are attributed to the soil and environmental factors, which have helped it meet the requirements for Geographical Indications protection.

Ceylon Cinnamon is a versatile perennial crop, with all parts of the tree used in food, cosmetics, and pharmaceuticals. Cinnamon leaf oil and bark oil contain high aromatic compounds that are used in the cosmetics industry.

Ceylon Cinnamon is a key export crop for Sri Lanka, contributing significantly to the national economy. 

The industry is vital to Sri Lanka's agricultural sector, supporting numerous smallholder farmers and significantly contributing to rural livelihoods, with approximately 36,500 hectares of cultivation covering 19 districts across the island.

Ceylon Pineapple

With its tropical climate and fertile soils, Sri Lanka has a longstanding tradition of pineapple cultivation. Pineapples (Ananas comosus) are a popular tropical fruit appreciated for their sweet and tangy flavor, and they have become a significant agricultural commodity in the country. The pineapple industry in Sri Lanka has evolved over the years to become an important contributor to the nation's economy.

Sri Lanka exports pineapples to countries in Europe, Middle East, Japan, US, the Maldives, Germany, Netherlands in fresh form and value-added forms.   

Pineapple cultivation in Sri Lanka has adapted to tropical-climatic regions across the country. "With an annual production of 52,869 metric tons across 5,259 hectares, Sri Lanka exports pineapples worth approximately $40 million annually, primarily to the Middle East, the Maldives, Germany, the Netherlands, and France.

Pineapple cultivation in Sri Lanka is centered primarily in Gampaha and Kurunegala, which collectively account for over 56 percent of the nation's total production. The unique selling point of Sri Lankan pineapple is its high Brix value (16 percent), which is higher compared to other producers. This sweetness is attributed to the tropical conditions and year-round sunshine. Farmers adhere to international standards such as GLOBALGAP and Fair Trade.

Sri Lankan Crabs

Sri Lankan crabs are renowned worldwide for their sweet, tender, and succulent snow-white meat, perfect for a variety of delicious specialties like chili crab, baked crab, pepper crab, curry crab, and crab masala. Renowned species includes Mud Crab (Scylla serrata), Blue Swimming Crab (Portunus pelagicus) and Red-Spotted Swimming Crab (Portunus sanguinolentus).

Sri Lanka's premium crabs are identical with exceptional taste, superior quality, and ethical sourcing, making the island nation a top destination for crab enthusiasts and international seafood markets. It is the only Asian country certified by the Monterey Bay Aquarium for ethical sourcing of Blue Swimming Crabs. This endorsement highlights Sri Lanka as a trusted supplier of high-quality crabs.

Sri Lankan Blue Swimming Crabs are rich in nutritional values with the range of health benefits and choice for health-conscious consumers. Mud Crabs (the king of crabs) are a delicacy revered for its milky, rich flavor and impressive size. Sri Lanka's unique climatic and genetic diversity have attributed producing giant-sized and positioned as favorite in premium markets worldwide. From live exports to frozen and processed formats, Sri Lankan Mud Crabs are a sought-after choice for gourmet restaurants, seafood suppliers, and high-end retail markets due to its international reputation with the world's finest crabs. Seafood exports from Sri Lanka is recorded to the value of $300 per annum.

Precious stones: Blue Sapphires

Sri Lanka is known as Ratnadvipa, meaning "Island of Gems," because some of the rarest gems in the world are found in abundance there. Among these is the world-famous blue sapphire weighing 466 carats, which was discovered in Sri Lanka. Other renowned gems include the 500-carat Blue Giant of the Orient and the 400-carat Blue Belle of Asia. Throughout history, Sri Lanka's gems and jewelry have adorned the crown jewels of many royal families. One notable gem, a 105-carat cat's eye, discovered in a paddy field in Sri Lanka, gained fame among British royalty.

It is no wonder that Sri Lanka is affectionately called "The Sapphire Capital of the World," with a spectrum of beautiful colors of precious jewels found on the island. The Sri Lankan blue sapphire is particularly prized for its clear, deep blue hue, reminiscent of a peacock's feather. The Padma Raga, or Padparadscha—often referred to as King Sapphire—is a blend of the velvety pink of the lotus flower with golden flecks of light refracting within. An incredibly rare gem, Padparadscha has been known to resemble the sunset on a clear day.

China has become the largest consumer market for Sri Lankan colored stones, and the market is well-positioned for natural, untreated stones from Sri Lanka in the Chinese luxury fashion industry.