Sri Lanka’s Trade Heritage: A Journey from Village Markets toGlobal Connections

People on this island have traded, bargained, and sailed the oceans for hundreds of years. You can still hear the traditional rhythms in Negombo’s fish market. A fisherman’s wife lays out her haul, a spice seller scoops dried chilli into brown paper bags, and a young woman picks the ripest mangoes to take to her neighbourhood shop. These pictures show what domestic trade is all about: trading things within our own borders. Sri Lanka’s ports have seen ships from Gujarat, Persia, Arabia, and China, though they are barely over the horizon. This is foreign trade, a busy interaction with the rest of the world that has changed our language, culture, and food. This article explains the story of both the old pepper routes and the new tea trade, and it gives the people of Eunoia Lanka some things to think about.

Life in the village market – a tradition of domestic trade

Long before formal “markets” existed, Sri Lankan farmers and fisherfolk swapped surplus rice, fish and vegetables with neighbours. As settlements grew, three types of trading locations developed: market towns in the countryside, cities that doubled as political centres and port towns where rivers met the sea. Merchants formed guilds known as puga and vinija, and some became respected community leaders. Many traders were called setthi, and the chief of the setthis even sat on the royal council during the Polonnaruwa period.

Most transactions were modest and local. Salt, metal tools and pottery, which villages could not produce themselves, travelled inland along ox-cart roads. Payment often took the form of paddy or other grains, though early coins such as the kahapana – small silver pieces stamped with symbols like the sun, tusker or a tree – were used in towns. Excavations at Anuradhapura and other sites have uncovered punch-marked coins and die-struck coins bearing swastikas and elephants. These finds show that currency gradually replaced barter, especially from the fourth century onward.

Village markets also fostered community. People met on Poya days to share news, foods and stories. In some periods shopkeepers who opened on religious holidays paid a small fee to local temples – an early example of a communal trade tax. Such practices kept markets lively while respecting spiritual observances.

A crossroads of the world – Sri Lanka’s foreign trade

Thanks to its location in the middle of the Indian Ocean, Sri Lanka has always been a hub for travellers. Greek geographer Ptolemy described Taprobane as an island of nearly continental size, and ancient mariners used the southwest and northeast monsoon winds to sail here. Harbours like Manthai, Godawaya and Gokanna were busy from the 3rd century BCE to the 10th century CE, with navigable rivers linking them to inland cities. Historical sources even record that Li Chao, a 9th-century Chinese official, wrote that ships from “the Lion Kingdom” were the largest in his day, with stairways for loading and unloading goods.

Merchants imported silks, cotton cloth, porcelain, opium, camphor, musk, glassware and even looking-glasses. They exported a dazzling array of products: gems, pearls, elephants, ivory, tortoise shell, fine timber and spices such as cloves, cardamom, pepper and cinnamon. Cinnamon, harvested from the bark of the Cinnamomum verum tree, was so prized that Arab traders kept its source secret and European powers later cultivated it for export. Sri Lanka’s harbours became melting pots where Persian, Indian, Roman and Chinese merchants met to barter and exchange goods. The discovery of foreign coins – Greek, Roman, Chinese, Indian, Afghan and Persian – near harbour sites confirms just how cosmopolitan these markets were. Some Roman brass coins were even imitated locally for circulation.

Another testament to this international network is the port of Godavaya, on the south coast. Archaeologists excavated stone jetties, a customs house and lion-seals used by officials to mark goods; Roman coins, beads and pottery from China, the Middle East and Rome were also found there. Sri Lanka exported garnets so far afield that a hoard found in Staffordshire, England contained cloisonné garnets thought to have come from the island. By the 6th century, Persian merchants were buying silk in Sri Lanka, crowding out Byzantine traders and filling the ports with vessels from India, Persia and Ethiopia.

From elephant caravans to coins – the evolution of money

As trade expanded, Sri Lankans moved beyond barter. The kahapana, a punch-marked silver coin, circulated from the 3rd century BCE to the 1st century CE. These coins were cut from hammered sheets and adjusted in weight by clipping corners; each owner added unique symbols, so some coins bear twenty or more markings. Later coins depicted elephants, swastikas and even the goddess Lakshmi. The use of currency suggests a sophisticated economy: people could store value, pay taxes and transact across long distances. The Central Bank of Sri Lanka notes that foreign coins – Greek, Roman, Chinese, Arabic and Indian – found at Anuradhapura, Sigiriya and other sites are clear proof that the island was a functioning naval base and part of a global trading network.

Modern trade – tea and textiles meet technology

While ancient traders bartered gems and elephants, modern Sri Lanka earns foreign exchange through tea, textiles and tourism. In 2023 the country exported goods worth US $13.5 billion and imported about US $17.4 billion. According to the Observatory of Economic Complexity, the top exports were tea (US $1.12 billion), women’s undergarments, knitwear and precious stones. The main destinations were the United States (about US $2.98 billion), India, Germany, the United Kingdom and Italy. On the import side, Sri Lanka bought refined petroleum (US $2.34 billion), crude petroleum (US $921 million), light rubberised knit fabric (US $765 million), packaged medicines and raw sugar, mainly from India, China, the United Arab Emirates, Singapore and Malaysia. These figures show that the island still relies on its traditional strengths – agriculture and garments – while importing energy, raw materials and technology.

In terms of economic complexity, Sri Lanka ranked 80th out of 132 economies in 2023; it was the world’s largest exporter of used rubber tyres. The balance between exports and imports continues to shape policy decisions, from promoting value-added cinnamon products to negotiating trade agreements with Asian and European partners.

Looking ahead – lessons for Eunoia Lanka

Eunoia Lanka was founded to celebrate the island’s creativity and connect small producers to ethical markets. Our history reminds us that trade is not just about numbers; it’s about relationships and stories. Ancient merchants respected religious holidays, paid dues to temples and formed guilds that nurtured craftsmanship. They navigated monsoon winds, shared knowledge and bridged cultures. Today, we can honour their legacy by sourcing responsibly, paying fair prices and preserving our heritage crops and crafts.

As Sri Lanka reimagines its place in regional supply chains, opportunities abound. Value-added cinnamon oils, ethically mined gems and sustainably produced apparel can fetch premium prices abroad. Digital platforms allow rural artisans to showcase work beyond their village, just as sailboats once carried spices across the seas. By understanding the tapestry of domestic and foreign trade, Eunoia Lanka hopes to weave a future where local livelihoods flourish and the world continues to savour our island’s bounty.