flag Sri Lanka Sri Lanka: Perfil comercial

Foreign Trade in Figures

Sri Lanka is relatively open to international trade, which accounted for 40% of GDP in 2020 (World Bank, 2022). Nonetheless, its share in GDP has declined almost continuously in the last 20 years after peaking at 88.6% in 2000. The country mainly exports textiles and garments (over 40% of total exports in 2020), tea (11.3%), rubber products (over 7%), and refined petroleum (2.1%). Its main imports include refined petroleum (7.9%), textile and textile articles (over 14%), ande crude petroleum with 2.4% (OEC, 2022). In 2020, the COVID-19-led global crisis took its toll on the Sri Lankan international trade too, with exports falling an estimated 19.9% and imports dropping by 13.2% (IMF). As the conjuncture is expected to gradually improve during 2021, both exports and imports should rebound (+33% and +24.1%, respectively).

Sri Lankan exports are directed towards the U.S. (23% of all exports), the United Kingdom (8.1%), India (6.5%), Germany (6%) and Italy (4.1%); whereas imports come chiefly from China (24.7% of all imports), India (20.5%), the U.A.E. (5.7%), Malaysia (4.2%) and Singapore (4%). The country’s trade policy aims to strengthen access for Sri Lankan products on the international market. As such, the Government has signed several bilateral and multilateral trade agreements, especially at the regional level. China and Sri Lanka have been negotiating a free trade agreement. However, while China has been pushing to reach a deal, Sri Lanka stated that they want more time to negotiate the agreement, as the Government is concerned about the economic impact of a rushed deal on its economy (Sri Lanka had demand for a review of the deal after 10 years, to which China did not agree). Therefore, negotiations are currently in a stalemate. Sri Lankan exports have been traditionally less competitive than those of other countries in the region such as Bangladesh and Vietnam due to higher minimum wage rates. Nevertheless, a rapid fall in the value of the Sri Lankan rupee and a minimum wage hike for the workers of the garment industry in Bangladesh and Vietnam helped to level the playing field.

Sri Lanka has a structural trade deficit. In 2020, merchandise imports reached 16.2 billion USD, while exports totalled 11.3 billion USD (OEC, 2022) resulting in a deficit of 4.9 billion USD.

More recently, Sri Lanka’s trade deficit widened to USD 1089 million in January of 2022 from USD 562 million a year ago. Imports surged 46.8% from a year earlier to a record high of USD 2241 million, on higher purchases of intermediate goods (58.2%), namely fuel (88.2%), textiles and textile articles (27%) and base metals (457%). Also, shipments rose for consumer goods (28%), in particular medical and pharmaceutical products (133.7%) and investment goods (36.1%), namely machinery and equipment (45.7%). Meanwhile, exports rose by a softer 20 percent to USD 1156 million, boosted by sales of industrial products (21.3%), mainly textiles and garments (18%), agricultural products (14.3%) and minerals with 8.8% (Central Bank of Sri Lanka, 2022).

 
Foreign Trade Indicators 20162017201820192020
Imports of Goods (million USD) 19,19020,98022,23319,93716,055
Exports of Goods (million USD) 10,34011,36011,89011,94010,047
Imports of Services (million USD) 6,1996,4516,7566,5423,914
Exports of Services (million USD) 7,1387,7268,3407,4533,009
Imports of Goods and Services (Annual % Change) 872-6-11
Exports of Goods and Services (Annual % Change) -1807-10
Trade Balance (million USD) -8,873-9,619-10,343-7,997n/a
Foreign Trade (in % of GDP) 5051545240
Imports of Goods and Services (in % of GDP) 2829302923
Exports of Goods and Services (in % of GDP) 2122232317

Source: WTO – World Trade Organisation ; World Bank - Latest available data.

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Main Partner Countries

Main Customers
(% of Exports)
2020
United States 24.8%
United Kingdom 8.9%
India 6.1%
Germany 5.7%
Italy 4.5%
See More Countries 50.0%
Main Suppliers
(% of Imports)
2020
China 22.9%
India 19.3%
United Arab Emirates 5.7%
Malaysia 4.1%
Singapore 4.0%
See More Countries 44.1%

Source: Comtrade, Latest Available Data

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Main Products

10.7 bn USD of products exported in 2020
Tea, whether or not flavouredTea, whether or not flavoured 12.4%
Brassieres, girdles, corsets, braces, suspenders,...Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, of all types of textile materials, whether or not elasticated, incl. knitted or crocheted (excl. belts and corselets made entirely of rubber) 4.7%
Women's or girls' slips, petticoats, briefs,...Women's or girls' slips, petticoats, briefs, panties, nightdresses, pyjamas, negligés, bathrobes, dressing gowns, housecoats and similar articles, knitted or crocheted (excl. t-shirts, vests, brassieres, girdles, corsets and similar articles) 4.6%
Women's or girls' suits, ensembles, jackets,...Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (excl. knitted or crocheted, wind-jackets and similar articles, slips, petticoats and panties, track suits, ski suits and swimwear) 4.1%
Women's or girls' suits, ensembles, jackets,...Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts, knitted or crocheted (excl. wind-jackets and similar articles, slips, petticoats and panties, track suits, ski suits and swimwear) 4.0%
See More Products 70.2%
15.6 bn USD of products imported in 2020
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 7.5%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses incl. those in the form of transdermal administration or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.7%
Electrical apparatus for line telephony or line...Electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof 2.6%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 2.6%
Fabrics, knitted or crocheted, of a width of > 30...Fabrics, knitted or crocheted, of a width of > 30 cm (excl. warp knit fabrics incl. those made on galloon knitting machines, those containing by weight >= 5% of elastomeric yarn or rubber thread, and pile fabrics, incl. long pile, looped pile fabrics, labels, badges and similar articles, and knitted or crocheted fabrics, impregnated, coated, covered or laminated) 2.5%
See More Products 82.1%

Source: Comtrade, Latest Available Data

 

To go further, check out our service Import Controls and Export Controls

To go further, check out our service Import Export Flows

 
 

Main Services

Source: United Nations Statistics Division, Latest Available Data

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List of tariffs and local taxes that apply to your product on our service Customs Duties and Local Taxes

 

Trade Compliance

International Conventions
Member of World Trade Organisation
International Economic Cooperation
Member of South Asian Association for Regional Cooperation (SAARC). The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).
Useful Resources
Sri Lanka Customs
National Organisation of Intellectual Property
Visit the website of the National Intellectual Property Office of Sri Lanka
 
 
 

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Latest Update: May 2022

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