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Sri Lanka’s competitive edge: Intellectual Property Rights and the power of Geographical Indications

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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.

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 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.

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.

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.

Dilani Hirimuthugodage

Unlocking the Economic Value of GIs: From Legal Reform to MarketLed 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.

By Dilani Hirimuthugodage,
Research Economist,
Institute of Policy Studies of Sri Lanka (IPS)


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Sri Lanka secures 10% US tariff rate: JAAF thanks the President and government for decisive action

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2026/07/25

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Today’s announcement by USTR of the finality of the Section 301 investigations into countries’ ability to impose and effectively enforce a prohibition on the importation of goods produced with forced labour sees 18 countries placed on a 10% tariff, with the balance of 42 countries facing a 12.5% tariff.

Initial indications were that Sri Lanka would fall into the 12.5% category, a position that would have placed the country at a real disadvantage against a number of key competitor nations.

Following Sri Lanka’s submissions to the USTR earlier this month, JAAF is pleased to see that Sri Lanka is now among the countries placed on the 10% tariff rate, on par with competitors including Bangladesh, Pakistan, India, and Cambodia.

Sri Lanka’s apparel industry competes in a crowded field, and even a 2.5 percentage point difference in tariff treatment can be the difference between winning and losing an order to a rival sourcing destination. Securing parity with Bangladesh, Pakistan, India, and Cambodia protects the competitiveness of an industry that remains the country’s largest export earner and a major source of employment, particularly for women, across the country.

JAAF recognises that this result did not happen by chance. It reflects sustained, coordinated engagement between industry and government at every level, from the submissions made to USTR to the direct representations carried out in Washington. We view this as a strong example of what can be achieved when the private sector and government work in close partnership on issues that directly affect Sri Lanka’s export competitiveness.

We remain committed to continuing this collaboration, both to safeguard the gains secured on Thursday and to ensure Sri Lanka’s apparel and textile industry is well positioned to compete on a level playing field internationally.

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CAHM students shine at National Bartenders Competition and Dainties 2026

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2026/07/25

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Students of the Colombo Academy of Hospitality Management (CAHM) at SLIIT once again demonstrated their talent, creativity, and professional excellence by securing outstanding achievements at two prestigious national hospitality competitions held recently in Sri Lanka.

The Colombo Academy of Hospitality Management (CAHM) is Sri Lanka’s leading private hospitality education institute, established in 2013 and located at the SLIIT Main Campus in Malabe. Renowned for delivering internationally recognised qualifications in partnership with the William Angliss Institute (RTO 3045), Australia—the Australian Government’s specialist hospitality education institute and the country’s leading provider of hospitality, tourism, foods and events education—CAHM offers Australian-standard vocational qualifications that combine international best practices with hands-on practical training and strong industry relevance, enabling graduates to pursue rewarding careers around the world.

At the 31st National Bartenders Competition (NBC), organized by the Sri Lanka Hospitality Graduates Association (SLHGA) in partnership with International Distillers Limited (IDL), CAHM student Anurasi Chandrasoma (Commercial Cookery Batch 22) emerged as the Winner in the highly competitive Hotel School Category. The competition, held on 26 May 2026 at the Sri Lanka Institute of Tourism and Hospitality Management (SLITHM), Colombo, attracted more than 75 participants from hospitality education institutions across the country.

Representing CAHM alongside the winner were Dishala Gunawardhana (Hospitality Management Batch 37), Sunera Sathindu (Commercial Cookery Batch 21), and Devindu Amarasekara (Patisserie Batch 11), all of whom showcased exceptional bartending skills and professionalism. The achievement marks another significant milestone for CAHM, reinforcing its reputation as one of Sri Lanka’s leading hospitality education institutions.

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Asia-Pacific business leaders to convene in Sri Lanka for UN Global Compact’s flagship regional event

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2026/07/25

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Asia-Pacific stands at the forefront of one of the defining transitions of our time. Home to many of the world’s fastest-growing economies, the region is also confronting some of the world’s most pressing sustainability challenges—from climate change and biodiversity loss to widening inequalities, geopolitical uncertainty and rapid technological transformation. As these challenges reshape the global business landscape, businesses are increasingly being called upon not only to respond, but to lead.

Against this backdrop, Sri Lanka will host Forward Faster Now | APAC 2026: Driving Business Leadership for Sustainable and Inclusive Growth, the United Nations Global Compact’s flagship regional event for Asia-Pacific. Bringing together more than 200 business leaders, sustainability practitioners, policymakers, representatives from the United Nations and UN Global Compact Country Networks from across the region, the two-day event will provide a platform to strengthen partnerships, exchange practical solutions and mobilize business leadership in support of the Ten Principles of the United Nations Global Compact and the Sustainable Development Goals (SDGs).

Led by the UN Global Compact Asia-Pacific Regional Hub and hosted in collaboration with UN Global Compact Network Sri Lanka, the regional event reflects a shared commitment to advancing responsible business and strengthening regional collaboration at a time when sustainable development depends on collective leadership and cross-sector cooperation.

The event will welcome Sanda Ojiambo, Assistant Secretary-General, CEO & Executive Director of the United Nations Global Compact, whose presence spotlights the strategic importance of the Asia-Pacific region within the United Nations Global Compact. Her first official visit to Sri Lanka signals the growing role of the region in driving responsible business and sustainable development, while offering participating companies a unique opportunity to engage with global leadership, showcase their sustainability journeys, and help shape the next chapter of collective action towards the Sustainable Development Goals.

Alongside Sanda Ojiambo, the Forum will also convene more than 60 global and regional leaders from business, the United Nations and civil society, including Dilhan C. Fernando, Chairman of Dilmah Ceylon Tea Company and Chairman of UN Global Compact Network Sri Lanka, and Sandra Wu, ESG Executive Adviser at Mirait One Corporation, fostering dialogue and collaboration to accelerate business leadership for sustainable and inclusive growth across Asia-Pacific.

Forward Faster Now | APAC 2026 also marks an important milestone in advancing the United Nations Global Compact’s 2026–2030 Strategy, which places renewed emphasis on equipping businesses with the knowledge, tools and partnerships needed to accelerate sustainable business transformation, catalyzing collaboration to address shared global challenges, and advancing responsible business leadership as a cornerstone of sustainable development. As one of the first flagship regional events aligned with this strategic direction, the event will help translate global ambition into regional action by connecting leaders, sharing practical experience and fostering the partnerships needed to create lasting impact.

Register Your Interest

Forward Faster Now | APAC 2026 will take place in Colombo, Sri Lanka, on 11–12 August 2026.

To register your interest or learn more about the event, please contact:

Chamath Kalupahana

Country Focal Point – Forward Faster Now | APAC 2026

Manager – Participant Engagement & Strategic Planning

UN Global Compact Network Sri Lanka

Email: chamath@unglobalcompact.org.lk

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