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Sri Lanka’s opportunities as a relocation hub

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Economic downturn in Germany, war in Europe, and an increasingly fragile political environment: Businesses in Europe—and particularly in Germany—are currently facing significant challenges. In this uncertain climate, many companies are reassessing their global footprints and considering the relocation of manufacturing sites.

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For our Agriculture Sector Committee, our law trainee Hendrik Berndt conducted an in-depth analysis of Germany’s current strengths and weaknesses as a business location, as well as the key location factors German companies prioritise today. His research also explored why Sri Lanka could emerge as an attractive relocation destination for German companies—especially within the agriculture sector.

 

Sri Lanka offers competitive advantages in labour costs and its strategic position in the Indian Ocean. However, challenges persist, including the regulatory environment, limited transformation capacity, and the need for a sufficiently skilled workforce.

Agriculture Committee Q4 2025 - Report Relocation of German companies

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