FTZMA seeks faster approvals, stable BOI rules in budget plan

The Free Trade Zone Manufacturers' Association (FTZMA) has submitted a set of proposals for the 2026 national budget, calling for a sweeping package of tax, trade and export reforms designed to strengthen competitiveness in what it described as a "tariff-heavy world".

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The association noted that the US remains Sri Lanka's largest single market, accounting for US $ 2.91 billion in exports in 2024. However, it warned that the universal tariffs imposed by Washington in April 2025, later revised to country-specific rates, with Sri Lanka's reduced from 44 percent to 20 percent in August, highlighted the risks of overreliance on one destination. The ongoing court challenges, coupled with the forecasts of weaker US consumption into 2026, make diversification urgent, the FTZMA said.

The association identified opportunities in the UK, where the DCTS liberalisation from 2026 will favour apparel and light manufacturing, the European Union (EU), where GSP+ has been extended until 2027, India, under the ISFTA, Thailand, with a free trade pact signed in 2024 and the Gulf, particularly the UAE, with scope for both exports and logistics hubs. It also highlighted services such as IT, maritime and tourism as tariff-proof growth areas.