Tea and Cinnamon Can Power Sri Lanka’s Export Revival As WBG Says North and East Hold ‘Huge Agri Potential’

COLOMBO (News 1st); Gevorg Sargsyan, World Bank Group Country Manager for Sri Lanka and Maldives, says the next phase of Sri Lanka’s recovery must lean on agribusiness that “adds value rather than exporting raw materials.”

The World Bank’s Sri Lanka - Country Partnership Framework (FY2026–FY2030) places labor-intensive sectors such as agribusiness, tourism, and niche manufacturing at the center of an export-led growth strategy designed to create jobs, boost rural incomes, and expand the country’s footprint in global markets.

“Sri Lanka can produce amazing quality of agriculture,” Sargsyan said. “Some of what Sri Lanka produces, like cinnamon and tea, are the best in the world. And this is a brand that Sri Lanka should build on.”

The Bank’s framework echoes that view: moving up the value chain, processing, branding, cold chains and logistics, can turn local production into high-value exports and large-scale employment.

The World Bank highlights agribusiness and export-oriented manufacturing as engines for rural employment, provided they are paired with reforms and investments. Key measures include land reform where necessary, greater access to processing facilities, improved logistics and cold chains, and market-oriented product diversification.

Engagement will help farmers and firms access new technologies, markets, and private capital. Strengthening the National Quality Infrastructure and deploying the Productive Partnerships approach are central to these efforts.

Sri Lanka’s comparative strengths, premium tea, world-class cinnamon and other high-quality agricultural products, make it well-positioned to be a first mover under the WBG AgriConnect Initiative, the Bank says.

Tourism alongside agribusiness is singled out as a labor-intensive sector that can scale jobs while driving foreign exchange. The World Bank plans a mix of investments, technical assistance for hospitality and agribusiness firms, and potential guarantees.

Capacity building for small and medium enterprises (SMEs) is part of the package to strengthen export orientation, enabling local firms to meet international standards and link into global value chains.

The Country Partnership Framework identifies the Northern and Eastern Provinces as areas with significant untapped potential in farming, aquaculture, tourism and processing industries. Yet today these regions contribute only 4 and 5 percent of national GDP, respectively, and face higher-than-average poverty rates.

Legacy challenges from the civil war, infrastructure and skills gaps, institutional weakness and complex land tenure, deter private investment. Specific constraints include low agricultural productivity, poor connectivity, inadequate water and sanitation, limited tourism and agro-processing facilities, and weak local government capacity.

Addressing these longstanding challenges is a government development priority and central to unlocking jobs and inclusive growth in the regions.

The World Bank’s approach combines financing with advisory and policy work to create an enabling environment for private investment. Improving regulatory and quality systems will help exporters meet international standards and command higher prices.