Gunawardhana, T.P.U.M.2026-09-152026-09-152025-09-11Peradeniya International Economics Research Symposium (PIERS) – 2025, University of Peradeniya, P 13 - 18978624570957123861568https://ir.lib.pdn.ac.lk/handle/20.500.14444/8055Introduction Rice is more than a staple food crop in Asia. It is deeply embedded in economic structures, food security systems, and export potential, particularly in South and Southeast Asia. Thailand and Sri Lanka, though geographically close and culturally influenced by rice cultivation, have followed diverging trajectories in terms of productivity growth and international competitiveness in the rice industry. Thailand has consistently ranked among the top global rice exporters, contributing approximately 12% to the world rice trade in 2022 (FAO, 2023). In contrast, Sri Lanka, despite favourable agroecological conditions and a rich agricultural tradition, has remained a net importer of rice in several recent years (CBSL, 2023). This divergence raises critical questions regarding the structural, policy, and technological differences shaping rice productivity and export strategies in these two countries. In Thailand, the rice sector has been strengthened by large-scale mechanisation, effective irrigation systems, and market-oriented reforms introduced in the 1990s and expanded under Thailand’s Agricultural Development Plan (Ministry of Agriculture and Cooperatives, 2022). These reforms emphasised export competitiveness, infrastructure development, and farmer training programmes. By contrast, Sri Lanka’s rice industry has focused mainly on domestic food security, supported by heavy subsidies for inputs such as fertilizer and water, as reflected in the “Api Wawamu Rata Nagamu” initiative. However, a lack of systematic export strategy and weak integration with global market has limited Sri Lanka's ability to capitalize on potential surplus production (Edirisinghe et al., 2020). Moreover, comparative productivity between the two countries reflects a significant disparity. In 2022, Thailand recorded an average rice yield of 3.0 metric tons per hectare, while Sri Lanka achieved 4.3 metric tons per hectare (FAOSTAT, 2023). Despite Sri Lanka’s higher yields, Thailand has outperformed in total factor productivity due to technological efficiency, superior logistics, and post-harvest management systems (World Bank, 2022). This paradox of higher yields, lower export performance in Sri Lanka indicates that productivity alone does not ensure trade competitiveness, highlighting the need for a multi-dimensional analysis of industry performance. The importance of this study is underscored by the economic crises faced by Sri Lanka in recent years, where agriculture and export diversification have emerged as key pillars in the recovery discourse (IMF, 2023). Understanding the successful elements of Thailand’s rice export strategies could offer critical insights for Sri Lanka to realign its agricultural policy toward both food security and global trade integration. Further, this research filled the gap in comparative literature that systematically evaluates production and trade metrics, institutional frameworks, and technological adoption in rice sectors across these two countries. Further, this study conducted a comparative analysis based on quantitative methods, investigated not only the level of productivity and export performance but also the institutional and technological foundations of sectoral outcomes, and found evidence-based policymaking contributes to the broader discourse on sustainable agricultural development and trade resilience in developing country contexts.en-USAgricultural policyExport CompetitivenessAgro- EconomicsRice Industry DevelopmentStrategiesSMEsArticle