International Trade in Sri Lanka

News Related to International Trade in Sri Lanka

• Logiventures Expands Vehicle Facility in Sri Lanka - May 13, 2013

  Logiventures invests in more land near Sri Lanka's Hambantota Port.Logiventures has invested in eight acres of land, near the Magam Ruhunupura Mahinda Rajapaksa Port in Hambantota, Sri Lanka, to support its vehicle transit facility, which opened there in June 2012. The expansion of the logistics company, a subsidiary of the Hayleys...

  Source: The Journal of Commerce

• Sri Lanka 2012-13 Rice Production Declines to 2.67 Million Tons; Down 14% from 2011-12, Says USDA Post - May 11, 2013

  Sri Lanka??s rice production in the MY 2012-13 (October - September) is estimated to decline to around 2.67 million tons, down around 14% from around 3.13 million tons of rice produced in the previous year, according to the USDA Post.

  Source: Oryza

• Sri Lanka: Heavy-Lift Vessel Han Xin Delivers Six Giant Wind Turbines from India - May 11, 2013

  Projects FPS – a division of FPS Sri Lanka, one of the country’s leading project forwarders – has handled the urgent shipment of six giant wind turbines from India, to a site 200km inland from the port of Colombo. The shipment – for Naladanavi Pvt Ltd, the largest private sector power supplier in Sri Lanka [...]

  Source: World Maritime News

• Sri Lanka cuts lending rates hoping for growth - May 11, 2013

  (MENAFN - AFP) Sri Lanka's central bank Friday cut benchmark lending rates by 50 basis points, saying the move was designed to encourage growth amid sluggish economic activity this year.The Monetary ...

  Source: Menafn.com

• Japan company doubles Sri Lanka export income - May 11, 2013

  Japan’s leading fish producer, known as ‘Tuna King,” Kiyomura Corporation Chairman Kiyoshi Kimura, will boost Sri Lanka’s deep sea fishing and double its fish export income.

  Source: SeadoodSource.com

• Sri Lanka Paddy Rice Production Declines 1% to 3.8 Million Tons in 2012 - May 09, 2013

  Paddy rice production in Sri Lanka declined to around 3.8 million tons (around 2.6 million tons, milled basis) in 2012, down about 390,000 tons or around 1.2% from paddy production in 2011, according to estimates by the UN??s Food and Agriculture Organization (FAO).

  Source: Oryza

• Saudi- No increase in Sri Lanka Haj quota - May 09, 2013

  (MENAFN - Arab News) Sri Lanka signed the annual Haj agreement with the Kingdom on Sunday, allowing Colombo to send 2,800 pilgrims. Speaking to Arab News following the signing ceremony, Sri ...

  Source: Menafn.com

• CICT to Start Discussions with Potential Customers (Sri Lanka) - May 08, 2013

  Colombo International Container Terminal Plc, (CICT) a unit of China Merchant Holdings (International) will begin discussions with potential customers shortly with the first berth due to open in July. “The port of Colombo can accommodate mega vessels,” CICT chief executive Yunshu Liu said on the sidelines of ports and logistics conference organized by Seatrade a [...]

  Source: World Maritime News

• Sri Lanka: Potato import tariff increased - May 07, 2013

  The Sri Lankan Government has revised the special commodity tax on potato imports in a bid to ensure better prices for local growers. A special commodity levy charged on a kilo of imported potatoes has been increased from Rs15 to Rs 25 ($0.11-0.19 US), the Finance and Planning Ministry announced.Source:.....

  Source: FreshPlaza

• Amnesty says Sri Lanka represses dissent to consolidate power - May 01, 2013

  COLOMBO (Reuters) - The Sri Lankan government is intensifying a crackdown on critics in order to tighten its grip on power, rights group Amnesty International said on Tuesday, urging Commonwealth countries not to hold a summit there in November.Related StoriesExclusive - Sources say senior Iranian diplomat detained in MarchChina steps up customs checks, but North Korea trade robustChile to be Latin America's only candidate to U.N. CouncilWatchdogs launch review of Boston bombing intelligenceObama renews vow to close Guantanamo detention camp

  Source: Reuters

• Sri Lanka to get 10 new Airbus aircraft, says official - Apr 29, 2013

  It will get six new Airbus A330-300 and four new A350-900 aircraft

  Source: Gulfnews

Business outline for Sri Lanka

Economic Overview

Even though the economic growth of Sri Lanka has been showing a steady rhythm during these last years (more than 6%), the global economic crisis combined with the impact of the latest conflicts between the government and the Tamil separatist forces, have caused an evident economic slowdown in 2009 (3.5%).  In 2010, the growth rebounded attaining 7% thanks to the revival in exports, the regain of investors' confidence and the dynamics of the agricultural and tourism services sectors. 

The financial difficulties affronted by Sri Lanka due to the global economic slowdown, led the authorities to sign a stand-by agreement with the IMF in July 2009. The objectives of the program are to reinforce competitiveness in the export sectors and to improve the financial system. In regards of public finances, the objective for 2011 is to bring down the deficit to 6.8%. The control of the public debt, which makes the country very vulnerable to international shocks, is also a priority. The ten-year development program presented by the government emphasises the urgency of updating public infrastructures in order to reach a growth level higher than 10% by 2020. 

A market-oriented banking system, a skilled labor force, a restored political stability and the remittances from the Sri Lankan diaspora (mainly from the Middle East) are positive factors to the country's economic growth. However, high poverty levels, low agricultural productivity, poor infrastructure facilities and inefficient public companies are obstacles that the country has to confront.

FDI in Figures

FDI inflows in Sri Lanka have been in a constant increase during the last recent years. After a slowdown provoked by the global recession, the flows have restarted to increase in 2010, stimulated by the end of the civil conflict and the economy revival.

For many years, the civil war had been a significant hindrance to the development of FDI. But, since the peace has been restored, the country offers many positive features that can attract FDI such as: the measures taken by  the government  (creation of free-zones, reduction of food subsidies and other consumption goods), the geographical strategic location of the country near two regions of high growth (India and Southeast Asia), and the tourism potential, which is yet to be fully exploited.

Electricity, textiles and telecommunications are the sectors that attract most of the foreign investments from countries like Japan, Australia and Germany, which are the main investor countries.

Foreign Trade Overview

Sri Lanka is open to foreign trade, which represented almost 60% of the country's GDP in the 2007-2009 period.  The country's trade policy aims at moving towards a trade system based on exchanges, with the objective of strengthening and increasing international market access for Sri Lankan products. In view of this, the government has signed several bilateral and multilateral trade agreements, especially at a regional level.

Customs duties are not very high and the country is easily accessible.  Nevertheless, there are some non-tariff trade barriers restricting speculative trading by commercial banks, a VAT on profits before taxes and salaries and the inadmissibility of electronic documents in courts. 

After having been reduced under the effects of the global economic crisis, the trade deficit became larger again in 2010 and it is estimated that trade will remain unfavorable during the next coming years.

Sri Lanka exports textiles and clothes, tea, spices, precious stones, coconut derivatives, rubber products and fish to the United States, the United Kingdom, India, Germany, Belgium and Italy.  It imports textiles, mining products, fuels, food, machinery and transport equipment from India, China, Iran, Singapore and South Korea.