Why learning is the hidden advantage of Sri Lankan exporters
View(s):Sri Lanka’s export challenge
Sri Lanka’s export sector remains a key pillar of the economy and a major source of foreign exchange. However, exporters face stiff global competition, while many exports remain concentrated in a narrow range of products and markets.
Although small and medium-sized enterprises (SMEs) form the backbone of the economy, only a small share participates in export trade. For these firms, succeeding internationally is far from easy. Global buyers expect high quality, reliable delivery, and strict compliance with international standards, while many SMEs operate with limited resources, expertise, and market information.
This raises an important question: what truly helps Sri Lankan SMEs succeed in export markets?
Learning as a competitive advantage
Our research with 365 Sri Lankan exporting SMEs shows that export success depends not only on entrepreneurial ambition but also on how effectively firms learn from others. While many SME owners are willing to explore new markets, introduce new products, and take calculated risks, these qualities alone are not enough in complex export markets.
Successful exporters learn by observing how experienced firms manage buyers, meet quality standards, adapt products, and organise distribution. Learning also occurs through trade fairs, buyer interactions, supplier relationships, and industry networks. By applying these insights, firms can strengthen their export strategies and avoid costly mistakes.
Learning alone is not enough. Firms must also be able to absorb and apply new knowledge. In management research this capability is known as absorptive capacity. Put simply, absorptive capacity is one type of learning capability. It refers to a firm’s ability not only to acquire useful external knowledge but also to understand it, adapt it, and apply it effectively. In practical terms, this means turning new knowledge into better practices, improved decisions, and stronger export outcomes.
Our findings show that SMEs perform best when they combine entrepreneurial thinking with strong learning capabilities.
Managerial implications
For SME owners and managers, the message is clear. Export success requires building organisations that learn continuously and adapt quickly.
Managers should actively observe competitors, customers, and international market practices. They should also create simple ways to capture knowledge within the firm. Recording buyer feedback, discussing export experiences, and reviewing lessons from trade events can help firms turn insights into improvements.
The exporters that succeed are often those that apply knowledge faster and adapt more effectively to changing markets.
Industry implications
Our findings are particularly relevant for Sri Lanka’s key export sectors, including apparel, tea, rubber products, coconut products, spices, seafood, and gems and jewellery.
Knowledge sharing is especially powerful in sectors where firms interact closely through industry networks and supply chains, such as manufacturing industries like apparel and rubber products. In agricultural export sectors, firms often rely more heavily on hands-on experience and industry relationships.
Stronger industry knowledge-sharing platforms, including sector associations, exporter clusters, and industry networks, can therefore help firms exchange insights on buyers, certification, product adaptation, and logistics.
Policy implications
Our findings also highlight important implications for national export policy. Strengthening Sri Lanka’s export performance requires more than traditional export promotion initiatives.
Institutions such as the Export Development Board, chambers of commerce, and industry associations can support SME learning through exporter mentoring programmes, knowledge-sharing networks, and practical capability-building workshops.
Policies that encourage knowledge sharing and capability development can help SMEs build the skills needed to absorb and apply new knowledge effectively.
The broader lesson
Sri Lanka needs exporters that are innovative, adaptable, and globally competitive. SMEs can play a crucial role in expanding and diversifying the country’s export base.
Our findings suggest that the firms most likely to succeed internationally are those that combine entrepreneurial thinking with strong learning capabilities, including the ability to absorb and apply external knowledge effectively. In an increasingly competitive global economy, businesses that learn smarter will ultimately export stronger.
By Dr. Shanika Perera,
A.Prof. Paresha Sinha and Dr. Antoine Gilbert-Saad, University of Waikato
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