In a bold shift triggered by former U.S. President Donald Trump’s tariff regime, Sri Lanka is turning its economic compass toward Africa and beyond signaling a major realignment in the country’s trade strategy.
According to government sources, dozens of Sri Lankan companies are ramping up efforts to expand into East Africa and other regions across the Indian Ocean. The Export Development Board (EDB) has already started advising businesses on how to break into new markets, with the Ministry of Foreign Affairs hosting key ambassador-level discussions on trade possibilities.
The move isn’t just talk. Officials confirm that sectors such as garments, construction, hydropower, MEP (mechanical, electrical, plumbing), rubber goods, and renewable energy are actively preparing to launch or scale up operations in countries like Kenya, Nepal, India, and the Maldives.
The EDB has urged Sri Lankan ambassadors to explore free trade agreements and carve out entry points for local industries across Africa. The East African region is now seen as a ripe opportunity, less restricted, increasingly stable, and rich in untapped potential.
Meanwhile, Sri Lanka’s booming service sector isn’t sitting still either. ICT companies are said to be opening new offices in global hubs like Singapore and Dubai, while leading firms in electronics and manufacturing are pushing into Bangladesh and even Israel.
Economic analysts are applauding the pivot, calling it a “timely diversification” in an era when dependency on Western markets carries rising risks. But they also raise a red flag: expanding globally is one thing—finding the leadership to manage these new operations is another. The lack of qualified international management talent remains a hurdle Sri Lanka must overcome.
For now, though, it’s clear: when Trump raised tariffs, Sri Lanka packed its bags and Africa is rolling out the welcome mat.
