Sri Lanka’s Trade Policy |
| The trade policy of Sri Lanka is to continue with the process of further liberalization of the country’s current trade regime, aims at integrating Sri Lanka with the global economy within the positive attributes of free market economy. |
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Exports |
| Total Exports - The value of Total Exports of Sri Lanka during 2008 was 8453.1 Mn US$ with an increase of 778 Mn US$ (10.1%) from the previous year. |
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Major Export Items |
Apparel and clothing accessories, Tea, Rubber and Rubber Products, Coconut & Coconut based products, Gem & Jewellery, Ornamental fish, Ceramic ware, Cut flower and Foliage, Leather products, Electrical machinery and parts, Fish & crustaceans, Molluscs, Vegetable fats and oils, Aircraft parts, Boilers, Machinery and parts, |
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Imports: |
| Total Imports - The value of Total imports of Sri Lanka during 2008 was 13,638.0 Mn US$ with an increase of 2237 Mn US$ (19.6%) from the previous year. |
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Major Import Items |
Mineral fuels, Oils and products, Motor vehicles, Electrical machinery and parts, Cotton, Iron, Steel, Knitted or crocheted fabrics, Plastics, Man-made staple fibres |
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Trade Agreements and Concessions |
- Indo – Sri Lanka Free Trade Agreement – (ISFTA)
- Pakistan - Sri Lanka Free Trade Agreement (PSFTA)
- Asia Pacific Free Trade Agreement – (APTA)
- Agreement on SAARC Preferential Trading Arrangement – (SAPTA)
- Generalized System of Preferences – (GSP)
- EU Generalized System of Preferences – (EU GSP)
- Global System of Trade Preferences (GSTP)
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For more details please click here |
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Trade between Sri Lanka and South Africa |
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South Africa has become the most important trading partner for Sri Lanka in the Southern African region. The two way trade has expanded substantially over the last decade. Total exports of Sri Lanka to South Africa have increased over the past 7 years from US $ 10.41 Mn in 2002 to US $ 16.19 Mn in 2008 recoding a significant increase of 55.5%.
The balance of trade between two countries is reported regularly in favour of South Africa except in 2007. But it should be noted that Sri Lanka has been able to minimize the gap over the past few years. |
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Exports |
In terms of Sri Lanka’s total exports, South Africa is considered as the biggest export market in the Southern African countries while the average Sri Lanka’s total exports to South Africa for the duration of 2002- 2008, is recorded at US $ 13.85 million.
Sri Lanka’s Major Export Items to South Africa
- Rubber and Rubber products
- Tea
- Clothing and apperal
- Retreated or used tyres - Sri Lanka has been ranked as the 02nd largest single supplier to South Africa after Japan
- Activated carbon - Sri Lanka as the largest supplier of Activated carbon to South Africa
- Desiccated coconuts
- Tableware, kitchenware (household articles & toilet articles)
- Raw coconut coir
- Vegetables/fruit/nuts & other edible parts of plants
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Imports |
The value of Sri Lanka’s total imports from South Africa in 2008 was registered at US $ 23.59 million, while the 04 year average of the same was at US $ 20.52 million for the period of 2005- 2008. Railway equipments is the biggest single import item in 2006. Other major import items can be identified as, spirits, fruits, Iron and steel, paper and paper board.
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Sri Lanka’s Major Import Items from South Africa
- Iron or steel & its' articles
- Asbestos
- Polypropylene
- Articles of paper pulp, paper & paperboard
- Mineral fuels & oils, waxes
- Grapes (fresh)
- Apples
- Manganese dioxide
- Boilers & machinery & parts
- Organic chemicals
- Maize(corn) starch
- Man made staple fibres
Potential Exports From Sri Lanka to South Africa
- Ceylon Tea
- Textile & Garments
- Ceramic Products
- Rubber Tyres
- Coir based products
- Shrimps and Prawns
- Articles of jewellery
- Fibreboard
- Footwear
- Edible Fish
- Precious / Semi-precious stones
- Surgical Gloves of rubber
- Gaskets, washers and other seals of vulcanized rubber
- Stuffed toys
- Tiles of glazed ceramics
- Food preparations
- Insulated winding wire of copper
- Gloves of rubber
- Wooden Furniture
- Pepper
- Fruit & vegetable juice
- Live Plants
- Trailers for the transport of goods
- Electrical plugs and sockets,
- Sweet biscuits, Waffles and Wafers
- Cashew nuts, without shell, fresh or dried
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Investment |
The economic strategy of the Government is to encourage private sector to play a leading role in all economic activities. Therefore, special emphasis has been placed on creating a business climate conducive to private investment.
The Board of Investment (BoI) of Sri Lanka is the main foreign investment agency. It is a special independent and statutory body and empowered by laws to grant special concessions by varying, modifying or exempting an enterprise from their application of laws relating to Inland Revenue, customs and exchange controls, thus enabling to grant a variety of incentives to investors. Foreign investments are guaranteed protection by the Constitution of Sri Lanka. Since 1992, the entire island has been declared an Export Processing Zone.
Today, Sri Lanka's infrastructure ranks as the best in South Asia. The government is actively encouraging private sector investment in infrastructure on the basis of BOO (Build, Operate and Own) and BOT (Build, Operate and Transfer). Currently there are private investment projects in power, telecommunication, construction industry, hotels, ports, water sanitation, transportation (highways and rail) and IT.
Why Invest in Sri Lanka
Solid Infrastructure
- Most developed telecommunication infrastructure facilities in South Asia based on private sector investments.
- The construction of four major expressways will improve the existing road network. These include the Colombo/Matara, Colombo/Katunayake, and the Colombo/Kandy highways as well as the Colombo outer circular road.
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Colombo - Hub Fort of South Asia
According to the Lloyds Register the Colombo Port ranks as No. 01 port of South Asia and the 26th in the World. |
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Bandaranaike International Airport (BIA)
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The BIA is a regional hub of air transportation and is considered to be # 1 in South Asia.
Highly literate and cost competitive labour force
The Sri Lankan work force accounts for 35% of the total population. Sri Lanka boasts high levels of education. We have the highest literacy rate in South Asia (92%) and approximately 50% of the students who have completed their higher education are trained in technical and business disciplines. English is widely spoken in the country and is the main language used by the business community.
Open Economy
Today, Sri Lanka is ranked as the most liberalized economy in South Asia. Investors are provided with preferential tax rates, constitutional guarantees on investment agreements, exemptions from exchange control and 100% repatriation of profits.
High Quality of life
Sri Lanka leads the South Asian region in terms of human development indicators, with its high literacy rate of 91% placing it way ahead of other South Asian nations & on par with those of south East Asia. Its national health indicators are comparable with those of the developed world.
Transparent laws
The safety of foreign investment is guaranteed through the enactment by two third majority of Parliament of the Constitutional Guarantee of Investment Protection Agreements. Under article 157 of the country's constitution, the agreement enjoys the force of law and no legislative, executive or administrative action can be taken to contravene the provisions of a bilateral investment agreement otherwise than in the interests of national security.
For all trade and investment related matters, please contact the Third Secretary (Commercial) during the working hours of the Mission.
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