Sri Lanka’s export sector has the potential to significantly benefit from the adoption of Artificial Intelligence (AI), according to experts.
As the country moves forward with the understanding of the significance of diversifying the export basket, AI offers opportunities to enhance global competitiveness. This also highlights the need for investment in technology-driven solutions to improve Sri Lanka’s export capacity.
How exports benefit
Speaking to The Sunday Morning Business, Export Development Board (EDB) Chairman Mangala Wijesinghe highlighted the potential of AI in enhancing Sri Lankan exports.
“AI offers a strong opportunity to enhance efficiency, product quality, and global competitiveness for Sri Lankan exporters and can be applied across various aspects of export operations to improve the overall competitiveness of Sri Lankan products in international markets.”
He stated that AI-powered inspections ensured high-quality products by reducing defects, which ultimately strengthened the company’s reputation, while AI chatbots enabled 24/7 multilingual customer support, enhancing the overall customer experience and facilitating market expansion.
Further, AI-driven tools allow exporters to track competitors in real time and adjust pricing strategies dynamically, ensuring optimal profitability. Also, predictive analytics powered by AI help to mitigate risks arising from external disruptions.
Wijesinghe added that AI could play a critical role in ensuring compliance with international regulations as AI systems were capable of monitoring export documentation to ensure it met the required standards, helping to prevent costly delays or issues at customs.
“In addition, AI automation streamlines complex documentation processes, reducing errors and improving productivity while tools can also assist in localising product communications. Furthermore, AI’s ability to analyse global trends enables exporters to forecast market demands and tailor their products accordingly, as well as influence sales and improve competitiveness.
“By embracing AI technologies, Sri Lankan exporters can make informed, data-driven decisions, confidently enter new markets, and drive long-term sustainable growth,” he said.
Potential AI technologies
Speaking to The Sunday Morning Business, Technologically Reawakening a Culture of Excellence (TRACE) Senior Vice President and Nagarro Managing Director Dr. Sankalpa Gamwarige explained that AI held potential across various export sectors and its integration could drive growth.
He explained that in the service sector, AI could enhance talent, particularly with the rise of generative AI, which could be used to boost export revenue as well, adding that from a market perspective, the technology export sector would benefit greatly from AI integration.
“The garment industry could benefit substantially from generative AI and agentic AI technologies to streamline processes. For instance, the order process, which currently involves massive amounts of work, can be significantly reduced through AI-driven automation,” he said.
Addressing Sri Lanka’s tea and tourism industries, Dr. Gamwarige noted the potential for AI in process automation.
“AI can help with quality detection and fine-tuning large multimodal models, improving both yield and efficiency. Using AI, one can quickly adapt and optimise operations without the need for massive amounts of training data. By introducing authentic, customisable systems, Sri Lanka could offer tourists personalised travel packages,” he said.
He further noted that AI could help identify anomalies in cash flow, eliminate waste, and improve operational efficiency, boosting both revenue and profit.
Regarding infrastructure concerns, he noted that while Sri Lanka may not have the capacity to invest heavily in building foundation models, the country could use pre-trained models available on cloud platforms like Amazon Web Services (AWS) and Azure, which are cost-effective and energy-optimised, while leveraging cloud-based machines for AI inferencing.
Dr. Gamwarige emphasised the significance of embracing AI technology, adding that markets not adopting AI risked falling behind. “We shouldn’t fear it; instead we should learn, unlearn, and relearn. Small enterprises, in particular, can quickly adapt and benefit from AI without needing massive investments,” he added.
The need to facilitate adoption
Meanwhile, speaking to The Sunday Morning Business, Information and Communication Technology Agency (ICTA) Technology Industry Development Director Chiranthi Balapatabendi highlighted the growing importance of AI in Sri Lanka’s export sectors.
“AI is integral to industries and it’s crucial to integrate AI into our exports. AI adoption has been slow across industries, though it’s being adopted at some level. I wouldn’t say we’ve reached the level required by the international market, but ICTA is facilitating this adaptation process,” she said.
She further pointed out that sector-specific analytics were essential as in all sectors. AI-driven research makes processes easier, but adoption should be customised to meet the unique needs of each industry.
“The Government believes AI should be adopted across all industries. The knowledge available in international markets must be shared with the local IT industry so it can integrate AI into its applications, particularly in analytics,” she added.
Commenting on adoption gaps, Balapatabendi noted that while larger enterprises in the export sector may have access to the latest AI tools, smallholders required institutions to provide mentoring. “At ICTA, we are committed to upskilling IT companies with new AI tools to help them stay competitive,” she said.
Role in diverse sectors
In the existing policy framework for AI, notable contributions include a white paper developed by the Committee on Formulating a Strategy for Artificial Intelligence (CFSAI) and the Sri Lanka Association for Software and Services Companies’ (SLASSCOM) Artificial Intelligence (AI) policy for Sri Lanka, as well as a United Nations Development Programme (UNDP) AI diagnostic study for Sri Lanka, among others.
Speaking to The Sunday Morning Business, cybersecurity strategist Asela Waidyalankara discussed the existing policy framework while placing emphasis on the path forward.
Waidyalankara emphasised that AI was already proving useful in Sri Lanka’s export manufacturing sectors, particularly in the garment industry.
“In the garment sector, AI is being heavily used for demand forecasting to improve operational efficiency and gain a competitive edge. This industry understands that it will be left behind if it doesn’t adopt AI. The key markets, like the US, require accurate consumer demand forecasting and AI has become critical to its strategy,” he said.
Waidyalankara also called for greater focus on the agriculture sector, where AI could optimise harvest efficiency, while noting that AI-driven models could also help the fisheries sector by identifying the best areas for catch, contributing to better yields and higher exports as well.
Focusing on tourism, he noted how AI platforms could help the public sector target tourists more effectively based on seasonality and market trends while enhancing the guest experience in hotels by providing personalised services and by forecasting tourism demand.
“Data is the backbone of AI. We need to invest in the right institutional infrastructure to ensure data quality. If the data is poor, AI will only produce poor results. It’s essential that we focus on building capacity to make the most of AI technology,” he added.
Waidyalankara acknowledged that the technology itself, being readily available, was not the barrier; instead, the impediment lies in the adoption of technology and in the attitudes of people.
“AI is not a silver bullet. The export sector must invest in it strategically, focusing on areas where it can drive revenue growth and cost savings. AI can streamline operations using tools like Robotic Process Automation (RPA), but it requires structured data. Many organisations face technical gaps, particularly with scattered data, which hamper their ability to fully leverage AI,” he said.
Waidyalankara also pointed out that Sri Lanka’s competitors were already integrating AI, highlighting that investments were necessary if the country wished to remain competitive.
AI as the way forward
Speaking to The Sunday Morning Business, University of Jayewardenepura (USJ) Department of Information Technology Professor Lasith Gunawardena explained the foundational role of AI in prediction.
“AI can predict outcomes based on historical data, but to generate accurate predictions, it requires large volumes of relevant data. The type of data needed depends on the specific industry. For example, in export sectors, demand forecasting data is crucial,” he said.
Prof. Gunawardena emphasised that data collection had become easier with the advent of modern technology. “Today, devices like sensors automatically collect data such as rainfall measurements or temperature, which can then be utilised by AI systems. If a company has a good network of these devices in their production process, it significantly enhances the effectiveness of AI.”
He further highlighted the importance of a broader technological ecosystem to support AI applications, noting: “To make full use of AI, companies need to adopt a wider set of technologies that will help AI make better predictions.”
Prof. Gunawardena noted that AI could also assist in demand forecasting as well as applications in areas such as material cost reduction and design, which was significant for exports.
“AI can generate designs and assist in materials management, helping businesses cut down costs and improve efficiency. More importantly, there is a growing focus on AI-driven operational solutions that save both time and money,” he said.
In terms of Small and Medium-sized Enterprises (SMEs), Prof. Gunawardena underscored that AI adoption did not necessarily require complex manufacturing solutions. “AI-powered cloud services can help SMEs reduce outsourcing costs, particularly in areas like advertising and content generation. These solutions are accessible and cost-effective, requiring minimal investment.
“For Sri Lanka’s export sector, the key is exploring how AI can be used to improve quality, reduce costs, and enhance productivity. Merging data from different sources into a single table for analysis is one critical step for making AI productive.”
In a broader aspect, addressing human capital growth with regard to AI is prominent in terms of looking at how AI could be leveraged. National Innovation Agency Sri Lanka Chief Innovation Officer Prof. Ajith De Alwis told The Sunday Morning Business that this growth was already in place.
He highlighted the growing interest in AI within Sri Lanka’s educational sector. “Human capital generation with regard to AI is in place,” he said, highlighting that faculties of Information Technology now offered AI courses which garnered significant interest from students.
“AI is a tool to cut down on labour and add competitiveness. In developed economies, simply saying a product or service is powered by AI can be a selling point,” he noted.
However, he highlighted that significant investment was required to develop the necessary infrastructure, especially for cyber-physical systems. “Sri Lanka has not approached major development. Only the apparel sector is prominent, which is a minority,” he noted, adding: “AI might not be a miracle tool, but it will definitely improve productivity.”
The white paper developed by the CFSAI identifies a notable gap in executive expertise when it comes to developing effective business cases for AI solutions. Sri Lanka’s performance in key dimensions such as Government Adaptability and Technology Maturity indicates considerable room for improvement. The country ranks 172nd out of 193 in Government Adaptability and 72nd in Technology Maturity.
Also, according to the Tortoise Media Global AI Index (GAII), which ranks countries based on their AI capacity, Sri Lanka ranks 60th out of 62 economies in the latest 2023 edition, highlighting room for improvement in both AI investment and infrastructure.
Meanwhile, National Chamber of Exporters (NCE) President Jayantha Karunaratne emphasised the potential of AI in the export sector.
“AI is the way forward, not only for exporters but for all businesses. It will help reduce our costs and also provide more data instantly along with market information, all of which will help to improve business,” he said.
He acknowledged that Sri Lanka had been slow in adopting AI but stressed on the urgency. “We have to make an attempt to start using it without further delay. Digital information is crucial because we need information to continue our business. To enhance competitiveness, reduce costs, and increase activity, we need to embrace AI,” he noted.