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)