Sri Lanka's Domestic Barriers to Trade: Case Studies of Agricultural Exports

Abstract

Trade barriers refer to factors beyond the exporter’s direct control that adversely affect the cost, quality, quantity, or timely delivery of products. Such barriers found at home are termed domestic barriers, while those found abroad are termed external barriers. This study identifies the domestic trade barriers prevalent at the Sri Lankan border and analyses their impact on agricultural exports. The study finds that domestic trade barriers are a significant impediment to growth and diversification of agricultural exports. The negative effects of these barriers are especially pronounced in the case of perishable agricultural products. Their quality and shelf life can be irreversibly affected due to delays caused by such barriers. Removing these barriers can go a long way to boost exports.