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 foreign exchange earnings from total exports of Sri Lanka
during 2010 was as US$ 8.30 billion with an increase of US$1223 Mn (17.26%)
from the previous year. Of which tea export revenue has reached US$ 1.37
billion in 2010 as against US$1.18 billion in 2009. Textile and Garments export
is recorded as 6.6% increase in 2010 with an annual export earnings of US$ 3.47
billion. |
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Major Export Items |
Textile and Garments, 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 2010 was US$
12.27 billion 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
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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 trade between Sri Lanka to South Africa have increased
over the past five years from US $ 32.17 Mn in 2005 to US $ 38.61 Mn in 2010 recoding a 20% increase of total trade. The balance of trade between two countries is in favour of Sri Lanka in US$ 3.07
Mn in 2010 as against negative balance of trade in US $ 11.97 Mn in 2005. |
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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. Sri Lanka’s total export to South
Africa is recorded at US $ 20.84 Mn. in 2010 compare to US$ 10.10 Mn in 2005.
This reflects significant increase of exports from Sri Lanka to South Africa with a
growth of 100% over the last five years.
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 2010 was registered
at US $ 17.77 million, while US $ 17.67 Mn was reordered in 2009. Over the last
five years import value has been fluctuated from US$ 22.07 Mn. to US$17.77
Mn. The 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
Sri Lanka invites Foreign Direct Investment for the island wide development
projects mainly in the North and Eastern Provinces with the political
and economic stability of the country After establishment of peace, the
government has created conducive business environment for foreign
investors.
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. |
Hambantota Port - Hambantota port is in place in the Southern region of Sri
Lanka and new developments/ industries are taking place.
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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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