BILATERAL ECONOMIC AND COMMERCIAL RELATIONS
Bilateral trade has found a new momentum since the entry into force of the India - Sri Lanka Free Trade Agreement (ISLFTA) in March 2000. India-Sri Lanka bilateral trade for 2002 touched US$1 billion for the first time ever. The last five years have witnessed a trebling of bilateral trade figures. In 2003, bilateral trade touched US$ 1338 million with exports from India to Sri Lanka amounting to US$ 1093 million; while exports from Sri Lanka to India in the same period amounted to US$ 245 million. In 2004, bilateral trade touched US$ 1732 million with Indian exports amounting to US$ 1350 million and Sri Lankan exports amounting to US$ 382 million. The trade balance in favour of India has declined from 15.7 : 1 in 1998 to 3.5 : 1 in 2004, demonstrating a faster rate of growth of Sri Lankan exports as compared to India's.
India accounts for almost 15% of total Sri Lankan imports (biggest source of Sri Lankan imports) and is the 3rd largest export destination for Sri Lanka. Seen from India, Sri Lanka is a relatively small market. It accounts for around 2% of total Indian exports and less than 1% of its imports. With US $ 450 million in FDI approvals India is the fourth largest overall investor in Sri Lanka. Sri Lankan investments in India are insignificant.
Bilateral Trade Figures for last 8 years
Year |
Imports from India |
Exports to India |
Total Trade |
All figures in US $ million, (FTA implemented in March 2000) |
1999 |
512 |
49 |
561 |
2000 |
600 |
58 |
658 |
2001 |
602 |
72 |
674 |
2002 |
835 |
171 |
1006 |
2003 |
1093 |
245 |
1338 |
2004 |
1350 |
382 |
1732 |
2005 |
1437 |
588 |
2025 |
2006 |
1811 |
491 |
2302 |
SRI LANKA'S EXPORTS TO INDIA
ITEM-WISE TOP 10
(JANUARY TO DECEMBER 2006)
HS CODE |
DESCRIPTION |
FOB VALUE US$ MILLION |
151620 |
Vegetable fats and oils |
79.22 |
741300 |
Stranded wire cables-copper |
38.58 |
704319 |
Refined copper-others |
30.37 |
760511 |
Aluminium wire |
24.85 |
151790 |
Margarine |
23.05 |
680221 |
Marble, Travertine and Alabaster |
22.45 |
854419 |
Insulated plastic and rubber Winding wire (excl. of copper) |
14.71 |
09411 |
Dried Pepper neither crushed nor ground |
13.15 |
740312 |
Refined copper-wire bars |
11.41 |
09070002 |
Cloves |
11.24 |
SRI LANKA'S IMPORTS FROM INDIA
ITEM-WISE TOP 10
(JANUARY TO DECEMBER 2006)
HS CODE |
DESCRIPTION |
CIF VALUE US$ MILLION |
27101904 |
Gas oil/diesel |
223.09 |
87112003 |
Motorcycles exceeding 50cc but not exceeding 125cc |
75.16 |
27101102 |
Petrol |
67.83 |
300490 |
Medicaments-other |
65.12 |
87032107 |
Auto trishaws |
60.36 |
87021012 |
Motor vehicles for transport of passengers |
51.13 |
740811 |
Copper wire |
47.05 |
27101902 |
Kerosene type jet fuel |
46.20 |
87042201 |
Motor vehicles for transport of goods |
38.15 |
27090001 |
Crude Petroleum oils and oils |
36.66 |
SRI LANKA INDIA BILATERAL TRADE -
1989 2004 (August) (US$ million)
| Year |
Imports from India |
Exports to India |
Trade deficit |
Total trade |
| 1989 |
57 |
8 |
49 |
65 |
| 1990 |
118 |
21 |
97 |
139 |
| 1991 |
217 |
13 |
204 |
230 |
| 1992 |
302 |
11 |
291 |
313 |
| 1993 |
345 |
20 |
325 |
365 |
| 1994 |
404 |
24 |
380 |
428 |
| 1995 |
470 |
32 |
438 |
502 |
| 1996 |
564 |
43 |
521 |
607 |
| 1997 |
559 |
44 |
515 |
603 |
| 1998 |
539 |
38 |
501 |
577 |
| 1999 |
512 |
49 |
463 |
561 |
| 2000 (Post FTA) |
600 |
58 |
542 |
658 |
| 2001 |
602 |
72 |
530 |
674 |
| 2002 |
835 |
171 |
664 |
1006 |
| 2003 |
1093 |
245 |
848 |
1338 |
2004 |
1350 |
382 |
656.45 |
1732 |
Changes in traded commodities
Over the years, the pattern of India's exports to Sri Lanka has undergone a change. While sugar was the largest item of export to Sri Lanka, our exports in the 1990s diversified into industrial goods such as petroleum products, pharmaceuticals, iron & steel products, auto rickshaws, buses, lorries, and motor vehicles (SUVs, jeeps, cars), bicycles, cement, paper, diesel, and chemical products apart from wheat, rice, chillies, potatoes, vegetables, yarn and fabrics. Sri Lanka's major exports to India are copper, cloves, pepper, naphthalene, apparel, alloy steel scrap, magnetic and optical readers, craft paper and corrugated paper board.
SRI LANKA 'S MAJOR EXPORTS TO INDIA (2000-2004) |
|
|
2000 |
2001 |
2002 |
2003 |
2004 |
HSNO |
DESCRIPTION |
US$ mn |
US$ mn |
US$ mn |
US$ mn |
US$ mn |
7403 |
Refined copper and copper alloys, unwrought. |
0.000 |
1.625 |
34.616 |
70.560 |
109.087 |
8544 |
Insulated (including enamelled/anodised) wire, cable |
0.220 |
0.137 |
0.059 |
7.932 |
41.470 |
72to 73 |
Iron or steel & its' articles |
5.409 |
4.680 |
4.784 |
8.958 |
21.886 |
090700 |
Cloves (whole fruit, cloves & stems) |
2.359 |
11.589 |
26.219 |
4.973 |
13.345 |
6802 |
Worked monumental/building stone (except slate) |
0.131 |
1.271 |
0.801 |
3.974 |
11.070 |
294190 |
Other (antibiotics) |
|
|
|
|
10.047 |
080111 |
Desiccated coconuts |
0.104 |
|
0.059 |
0.379 |
9.953 |
151620 |
Vegetable fats & oils & their fractions |
|
|
0.000 |
|
9.690 |
7413 |
Stranded wire, cables, plaited bands & copper |
|
|
|
0.219 |
8.295 |
84 |
Boilers & machinery & parts |
1.138 |
2.389 |
4.477 |
10.087 |
8.228 |
7601 |
Unwrought aluminium. |
|
|
0.811 |
1.740 |
7.956 |
090411 |
Pepper (neither crushed nor ground) |
9.701 |
4.570 |
12.436 |
9.633 |
7.786 |
441199 |
Other (fiberboard of wood) |
|
|
|
0.077 |
7.596 |
470710 |
Unbleached kraft paper/paperboard |
3.206 |
2.791 |
2.919 |
4.578 |
5.971 |
392620 |
Articles of apparel & clothing accessories (plastics) |
2.638 |
2.579 |
4.474 |
4.235 |
5.463 |
401120 |
Pneumatic tyres used on buses or lorries |
0.120 |
0.028 |
1.196 |
2.838 |
4.847 |
282490 |
Other (lead) |
|
|
0.141 |
3.327 |
4.306 |
79 |
Zink & articles thereof |
0.012 |
0.036 |
0.176 |
0.153 |
4.135 |
94 |
Furniture, lamps & fittings, illuminated name plates |
0.165 |
0.841 |
1.688 |
2.048 |
4.079 |
48 |
Articles of paper pulp, paper & paperboard |
1.255 |
2.162 |
2.284 |
2.325 |
3.805 |
23 |
Prepared animal fodder |
0.692 |
0.529 |
0.065 |
1.346 |
3.068 |
0902 |
Tea, whether or not flavoured. |
3.723 |
1.381 |
1.004 |
0.890 |
1.226 |
Other |
|
24.784 |
33.511 |
70.614 |
100.869 |
82.185 |
|
|
|
|
|
|
|
Total Exports |
55.659 |
70.118 |
168.822 |
241.142 |
85.496 |
Total Imports |
600.199 |
601.500 |
834.522 |
1076.168 |
1358.014 |
Balance of Trade |
-544.5 |
-531.4 |
-665.7 |
-835.0 |
-972.5 |
|
|
|
|
|
|
|
SRI LANKA 'S MAJOR IMPORTS FROM INDIA (2000-2004) |
|
|
2000 |
2001 |
2002 |
2003 |
2004 |
HSNO |
DESCRIPTION |
US$ mn |
US$ mn |
US$ mn |
US$ mn |
US$ mn |
070310 |
Onions & shallots |
17.733 |
15.823 |
19.540 |
21.095 |
21.779 |
09 |
Coffee, tea, mate & spices |
21.684 |
21.490 |
22.916 |
24.496 |
24.142 |
100190 |
Other wheat & meslin |
0.006 |
0.290 |
30.691 |
56.010 |
43.503 |
100590 |
Other maize (corn) |
0.022 |
0.176 |
0.344 |
2.189 |
22.805 |
100630 |
Semi-milled/wholly-milled rice |
0.281 |
3.946 |
9.784 |
3.220 |
41.237 |
230400 |
Oil-cake & other solid residues (extraction of soyabean) |
14.633 |
13.991 |
16.928 |
14.634 |
26.159 |
252329 |
Other (cement) |
12.540 |
25.202 |
24.238 |
31.108 |
20.058 |
270900 |
Petroleum oils & oils obtained from bituminous minerals |
0.000 |
|
|
0.000 |
22.639 |
271011 |
Light oils & preparations |
|
|
11.249 |
23.381 |
32.383 |
271019 |
Other kerosene, diesel, gas oil, lubricants etc. |
|
|
44.055 |
172.331 |
229.865 |
300490 |
Other medicaments |
29.966 |
28.618 |
35.778 |
39.822 |
43.939 |
39 |
Plastics & articles thereof |
14.011 |
13.865 |
19.295 |
23.575 |
36.235 |
48 |
Articles of paper pulp, paper & paperboard |
27.461 |
26.468 |
30.579 |
34.566 |
39.583 |
52 |
Cotton |
79.010 |
70.635 |
66.076 |
65.567 |
76.991 |
72to 73 |
Iron or steel & its' articles |
50.055 |
47.304 |
62.773 |
76.913 |
85.084 |
7408 |
Copper wire. |
0.550 |
0.526 |
3.424 |
8.421 |
23.057 |
84 |
Boilers & machinery & parts |
36.673 |
39.772 |
38.261 |
48.054 |
61.662 |
85 |
Electrical machinery, sound recorders, TV etc. |
25.124 |
19.488 |
56.501 |
24.792 |
35.951 |
