
Borderless Ambitions: Rethinking Sri Lanka’s Trade Strategy in an Era of Shifting Tariffs
By Shehani Gomes, General Manager- Business Intelligence, Development and Growth · 02 Jul 2025
At the recent Shift 2025 conference, I had the opportunity to join a panel discussion titled “Borderless Ambitions: Trade, Tariffs, and Regional Power”. It brought together leaders from trade, tech, and policy to explore how Sri Lanka can sharpen its competitive edge in a global economy where borders are increasingly blurred—yet strategically enforced.
At the forum, I spoke from the lens of the apparel sector—one of Sri Lanka’s most globally exposed industries.
Supply Chain Nationalism Is Here—But It’s Not Uniform
The global trade environment is no longer defined by open access. Domestic content rules, reciprocal tariff enforcement, and geopolitical hedging are shaping sourcing decisions. From the U.S. UFLPA to India's stricter rules of origin, “sourcing neutrality” is a thing of the past.
For Sri Lankan apparel exporters, the response isn’t relocation—it’s risk diversification. We’re seeing shifts toward AGOA-eligible countries, Jordan, and Central Americas to maintain market access, without compromising our core strengths in product quality and ethical manufacturing.
Trade Agreements Need a Reboot
Sri Lanka is party to several FTAs, including the Indo-Lanka FTA and SAFTA, yet few deliver consistently for exporters. While tariff lines may exist on paper, non-tariff barriers—ranging from customs delays to unclear product classifications—limit real-world benefits.
Rather than seeking entirely new agreements, there’s untapped potential in upgrading what we have. Solving for industry-specific pain points and building truly collaborative win-win bilateral trade exchange platforms will allow strong-capability-based industries with a unique global value proposition to transcend the tariff boundaries and aim for long-term and sustainable growth.
Ecosystem, Not Just Access, Defines Competitiveness
Today, the winning apparel suppliers aren’t just the cheapest or fastest—they’re the most transparent. ESG compliance, traceability, and short lead times are now baseline expectations from global buyers.
Countries like Vietnam and Bangladesh have invested heavily in bonded logistics, digitized customs, and ecosystem-level efficiency. For Sri Lanka to stay relevant, we need coordinated investment in digital trade facilitation, export financing for SMEs, and integrated data systems that help demonstrate our credentials above our counterparts- not just our capacity.
Looking Ahead | New Trade Playbook
Trade is fragmenting and integrating at the same time. For Sri Lanka’s apparel industry, survival won’t come from chasing every new opportunity—it’ll come from showing up smarter in the right ones- where our license to play from a capacity, capability and credibility perspective collectively, makes the most sense for us.
That means managing risk across supply chains, doubling down on value-added capability, and positioning ourselves as a trusted partner—not just a production hub.
“Borderless ambition” isn’t about having no borders. It’s about transcending them with the intentional strategy, deliberative storytelling backed by forward-looking data and substance.