Friday, August 28, 2026

Export diversification: Missing the wood for the trees – Part I

Sri Lanka stands at a critical crossroads in its economic journey, and the answer to one of its most pressing challenges may be hanging right from its trees. A striking statistic recently published in the Sinhala newspaper Divaina revealed that out of the 280 million jackfruits produced annually in Sri Lanka, only 80 million are consumed domestically. That leaves an astonishing 200 million jackfruits unaccounted for — wasted, rotting, or simply ignored. This single data point tells a powerful story about Sri Lanka's broader failure in export diversification, and why the country continues to miss enormous economic opportunities hiding in plain sight.

The Jackfruit Problem Is Bigger Than It Looks

At first glance, discussing jackfruits in the context of national economic policy may seem trivial. However, this is precisely the kind of thinking that has held Sri Lanka back for decades. The jackfruit is not merely a tropical fruit — it is a globally recognized superfood, a meat substitute embraced by the booming plant-based food industry, and a commodity with rapidly growing demand across markets in Europe, North America, and Asia. Yet Sri Lanka, one of the world's most naturally abundant producers of this fruit, exports a negligible fraction of what it grows.

The scale of waste is difficult to comprehend. Two hundred million jackfruits lost every single year represents not just a food security failure but a monumental missed economic opportunity. If even a fraction of these fruits were processed, packaged, and exported in value-added forms — canned jackfruit, dried jackfruit, jackfruit flour, or frozen jackfruit products — the revenue generated could make a meaningful contribution to the country's struggling foreign exchange reserves.

Why Export Diversification Remains a Distant Goal

Sri Lanka's export basket has remained dangerously narrow for years. The economy continues to rely heavily on garments, tea, rubber, and remittances. While these sectors remain important, their growth potential is limited, and over-dependence on a small number of export categories leaves the country extremely vulnerable to global price fluctuations and demand shifts. Policymakers have spoken about export diversification for decades, yet the results on the ground remain underwhelming.

The jackfruit example illustrates a systemic problem: Sri Lanka consistently fails to convert its natural agricultural abundance into exportable, value-added products. This is not a problem of resources — the raw materials exist in extraordinary quantities. It is a problem of vision, infrastructure, policy coordination, and investment in agro-processing industries. Without cold storage facilities, processing plants, quality certification systems, and reliable export logistics, even the most abundant natural resource will continue to go to waste.

The Global Market Is Ready and Waiting

The timing could not be more favorable for Sri Lanka to act. The global jackfruit market has experienced remarkable growth over the past decade, driven largely by the surge in demand for plant-based and vegan food products. Young jackfruit, in particular, has gained enormous popularity as a pulled-pork substitute due to its fibrous texture and ability to absorb flavors. Major supermarket chains across the United Kingdom, the United States, Germany, and Australia now stock jackfruit products as standard items.

Countries like India and Bangladesh have already begun capitalizing on this trend, developing organized supply chains for jackfruit processing and export. Sri Lanka, despite having comparable or superior growing conditions, remains largely absent from this global conversation. The window of opportunity exists, but it will not remain open indefinitely. As competing nations build their market presence and brand recognition, Sri Lanka risks being permanently locked out of a market it could have led.

What Needs to Change

Addressing this gap requires coordinated action across multiple levels. First, the government must recognize non-traditional agricultural exports as a strategic priority, not an afterthought. This means directing investment toward agro-processing infrastructure, providing incentives for private sector companies willing to enter the jackfruit processing space, and establishing clear quality standards that meet international import requirements.

Second, farmer-level support is essential. Many smallholder farmers who grow jackfruit have no viable market for their surplus produce. Creating organized collection systems, cooperative structures, and guaranteed purchase agreements would give farmers the confidence to invest in better cultivation practices and higher yields.

Third, Sri Lanka must invest aggressively in branding. "Ceylon Tea" is a globally recognized brand built over more than a century. There is no reason why Sri Lankan jackfruit products cannot achieve similar recognition with the right marketing strategy and consistent quality assurance.

A Wake-Up Call Hidden in Plain Sight

The story of 200 million wasted jackfruits is ultimately a metaphor for Sri Lanka's broader economic challenges. The country possesses remarkable natural wealth, a resilient population, and genuine agricultural diversity — yet it repeatedly fails to translate these advantages into sustainable export earnings. Export diversification will remain an empty slogan until policymakers, investors, and entrepreneurs begin paying serious attention to the opportunities that already exist, quite literally growing on trees across the island.

The wood is there. It is time Sri Lanka stopped missing it for the trees.