Export Revenue Drops as Pakistan Tightens Betel Leaf Trade Regulations

New Delhi, 12 September – Regulatory tightening and tariff pressure from Pakistan have caused Sri Lanka’s betel leaf export revenues to tumble. Export quantities fell from 4,387.02 metric tonnes in 2019 to 2,250.99 tonnes in 2024, turning a USD 17.77 million income stream into just USD 9.27 million. Even the 2025 partial recovery, which saw shipments rise to 3,336.18 tonnes and earnings climb to USD 13.39 million, could not restore the 2019 benchmark.

The sector’s paradoxical situation is amplified by a 44 percent increase in cultivated land – now 1,676 hectares – driven by free seedling distribution and investment subsidies. While the acreage expanded, the dollar‑based revenue continued to slide because the Sri Lankan rupee depreciated against the U.S. dollar, making local‑currency figures appear higher while actual foreign exchange earnings fell.

Exporters have lodged complaints with the commerce ministry about losing market access, but the agriculture department’s development and research division has not produced a study on the impact of Pakistani duties. The matter was revisited in a high‑level commerce dialogue on 28 January 2026 and again at the fourth joint working group meeting on 1 July 2026, where Pakistan outlined a phased duty reduction schedule, targeting full abolition by 2030. Stakeholders call for an inter‑departmental task force, a comprehensive field assessment of tariff obstacles, and intensified diplomatic outreach under the PSFTA to accelerate the removal of Pakistani regulatory charges.