Global Value Chains Decomposition Analysis on The Sri Lankan Economy

There has been a lot of upheaval in Sri Lanka recently. With the need to import so many items, export income is insufficient to cover Sri Lanka's import expenses. Therefore, decomposition Analysis in export must be implemented in conjunction with the global value chain. As a result, the primary goal of this paper is to investigate and quantify the impact of the Global Value Chain on the Sri Lankan economy. Thus, the following specific goals are expected to be met: comparing the Revealed Comparative Advantage indices of traditional and new trade approaches in Sri Lankan industries to determine a more efficient estimation of export success in the global value chain, assessing the upstreamness and average production length of Sri Lankan sectors to improve production efficiency, and investigating the This paper presents descriptive information about the industries using an analysis of the Asian Development Bank MIRO database. It covers the years 2000, 2007, and 2019. The main findings of this paper are that, compared to 2000, Primary Sectors have shifted to low-technology manufacturing in terms of domestic value-added (DVA). Furthermore, this is a turning point in the Sri Lankan economy because the country is transitioning from primary to low technology. Therefore, Sri Lanka must provide medium to high-technology manufacturing to satisfy the global value chain requirements