New Delhi, Sep 12 (IANS) Sri Lanka’s betel export sector has been hit by a sharp fall in shipments and dollar earnings to Pakistan–its primary betel market– amid tariff and regulatory barriers, a new report has said.
The report from Sri Lanka Guardian said that a lack of coordination between trade and agriculture agencies risks leaving farmers exposed to overproduction.
Exports to Pakistan fell from 4,387.02 metric tonnes in 2019 to 2,250.99 tonnes in 2024 with export earnings dropping from $17.77 million to $9.27 million over the same period.
A partial recovery in 2025 saw volumes touch 3,336.18 tonnes and revenue reach $13.39 million but levels remain well below 2019 figures despite a 44 per cent expansion in cultivation area to 1,676 hectares by 2025 through free planting materials and investment subsidies.
“This highlights a clear contradiction between cultivation area and export earnings. Furthermore, the relative increase in LKR revenue during 2022-2023 despite falling US Dollar earnings was primarily driven by the depreciation of the Sri Lankan Rupee against the US Dollar,” the report noted.
Exporters raised concerns with Sri Lanka’s Department of Commerce regarding market access loss, but the Department of Export Agriculture said that its development or research divisions had conducted no studies on the impact of Pakistan’s tariffs and import restrictions on betel exports.
The concern was also presented to the Pakistani delegation during the Commerce Secretary Level Talks on January 28, 2026, and at the 4th Meeting of the Joint Working Group on Trade, Investment, and Auto Sector on July 01, 2026.
The report said that the Pakistani side conveyed plans to gradually reduce the relevant duty and phase it out completely by 2030.
To safeguard Sri Lanka’s betel export sector, proper coordination between the Department of Commerce and the Department of Export Agriculture must be ensured, it urged.
Further, the publication suggested “field studies on exporters’ tariff barriers, and to strengthen diplomatic engagement to secure the early removal of Pakistan’s regulatory duties under the PSFTA framework rather than delaying until 2030.”
—IANS
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