Sri Lanka is South Asia’s main maritime logistic and distribution hub, connecting South Asia, the Far East and European and American continents. Consequently, doing business in Sri Lanka serves as an opportunity for exporters to expand their export business internationally. In the year 2023, Malaysia’s total exports to Sri Lanka amounted to USD 728.5 million. The top exported products are petroleum products, palm oil products, machinery, electrical and electronic products, plastic products and processed foods.

There are opportunities in the Sri Lanka food and beverages market, particularly for processed and convenience foods. The demand for processed foods has seen a steady increase over the years, as consumers with busy lifestyles require quick and easy meal solutions with minimal preparation time. Rising disposable incomes also enable consumers to spend more on processed foods. In addition, consumers’ dietary preferences have shifted towards foods such as snacks, ready-to-eat meals, packaged beverages and convenience foods tailored.

Prior to exporting goods to Sri Lanka, Malaysian exporters need to develop a thorough understanding of the local market, build relationships with reliable suppliers and partners, and stay informed on regulatory changes. Doing business in Sri Lanka also presents many challenges, notably the import tariffs and duties imposed on many products, potentially leading to an increase in the cost of goods. There are non-tariff barriers as well, such as technical regulations, sanitary and phytosanitary measures, and product standards. Other challenges include exchange rate volatility, local competition from local producers in Sri Lanka, changes in inefficient transportation networks, changes in government policies and political instability.

MATRADE has advised Malaysian exporters to conduct proper market research and due diligence before venturing into the Sri Lanka market. Besides that, exporters need to determine the best market entry mode and identify and connect with partners in Sri Lanka. Exporters also need to ensure they are in compliance with the local regulations and monitor developments in the Sri Lanka market.

Malaysian businesses who are interested in exporting to Sri Lanka may reach out to MATRADE Chennai for enquiries and assistance. MATRADE Chennai will be able to assist in connecting Malaysian exporters with Sri Lankan importers as well as coordinating and facilitating business networking. MATRADE Chennai will also organise promotional activities of Malaysian products and services in the Sri Lanka market.

For enquiries, please contact:

MATRADE Chennai
Capital 2A, 2nd Floor,
554 & 555, Anna Salai, Teynampet,
Chennai 600018, India

E: chennai@matrade.gov.my
T: +9144 2431 3722

References
MATRADE Webinar (Doing Business in Sri Lanka – Opportunities and Challenges)