The trade policy of Sri Lanka is to continue the process of further liberalization of the countries current regime, aims at integrating Sri Lanka with the global economy within the positive attributes of free market economy.

The focus of government’s external trade strategy continued to be centered on export diversification in terms of products and markets.

1. Exports:

The major exports of Sri Lanka can be categorized in to three major sections-

1. Agricultural Exports
2. Industrial Exports
3. Services
   
   
1. Agricultural Products:
1. Ornamental Fish
2. Cereal & Food Staff
3. Coconut & coconut based products
4. Cut flowers, cut foliage and ornamented plants
5. Fish, Fisheries products and fishing accessories
6. Edible fruits & nuts
7. Processed food, fruit juices, beverages and tobacco
8. Natural rubber
9. Spices and oil
10. Tea, Coffee and cocoa
11. Edible vegetables, roots and tubers betel leaves
    
    
2. Industrial Products:
   
   
1. Ceramic & pottery products
2. Chemical, plastic & allied products
3. Electrical and electronic products accessories
4. Footwear
5. Apparels clothing accessories
6. Gems  and Jewellery
7. Handloom textile
8. Leather & leather based products
9. Giftware & lifestyle products
10. Machinery, equipments, fabricated products
11. Metal & metal based products
12. Mineral & mineral based products
13. Paper & paper based products
14. Pharmaceuticals & medicinal products
15. Rubber based products
16. Toys
17. Wood & wood based products
    
    
3. Services:
   
   ICT products and other services
   
   
   
   

   2. Value & Export

Year	Total value (USD Mn.)	Increase	%
2006	6883	536	8.4
2007	7640	757	10.9
2008	8137	417	6.5




3. Major Imports

1. Mineral Fuels
2. Oils & Products
3. Motor Vehicles
4. Electrical Machinery & Parts cotton
5. Iron Steel
6. Knitted or crocheted fabrics
7. Plastics
8. Man-made staple fibres

Trade Agreements and Concessions:

1. General Trade Agreement between Government of the Democratic Socialist Republic of Sri Lanka and the Government of the People’s Republic of Bangladesh. (GTASLBD)
2. Indo-Sri Lanka Free Trade Agreement (ISFTA)
3. Pakistan-Sri Lanka Free Trade Agreement (PSFTA)
4. Asia Pacific Free Trade Agreement (APFTA)
5. Agreement on SAARC Preferential Trading Agreement (SAPTA)
6. Generalized System of Preferences (GSP)
7. EU Generalized System of Preferences (EUGSP)
8. Global System of Trade Preferences (GSTP)

Export:

Bangladesh has become the most important trading partner for Sri Lanka in the SAARC and South Asia region. The two-way trade has been expanded substantially over the last 05 decades. The Trade Agreement between Sri Lanka and Bangladesh was signed on 08th February 1977. There are 48 exportable items from Bangladesh and 36 exportable items from Sri Lanka under this agreement. The total export of Sri Lanka to Bangladesh has increased over the last three years in the following manner:

The balance of trade between Sri Lanka and Bangladesh is reported regularly in favor of Sri Lanka and amount is slightly increasing from USD Mn 15.5 to 22.7 during the year 2005 to 2007.

Sri Lanka’s Major Export Items to Bangladesh

1. Fabrics (Cotton)
2. Other (enzymes)
3. Pigments and Preparations based thereon
4. Narrow Woven fabric
5. Apparels and Clothing accessories
6. Coral and Similar materials
7. Oil and pits fractions
8. Paper, Paper Pulp, Board
9. Natural Rubber

10.  Copra

Imports

The value of Imports to Sri Lanka from Bangladesh is also slightly increasing during the last 3 years.

Sri Lanka’s major import items from Bangladesh:

1. Iron and Steal
2. Cotton
3. Pharmaceuticals and other medicaments
4. Woven fabric
5. Textile
6. Electrical / Electronic Items
7. Jute and Jute products
8. Apparel and clothing accessories

List of Potential exportable items from Sri Lanka to Bangladesh:

1. Ceylon Tea
2. Tire and other rubber products
3. Gems and  Jewellery
4. Food Staff
5. Coconut oil and other coconut based products
6. IT Services
7. Machinery and equipments using for apparel industry
8. Cosmetics
9. Chemicals and oil
10. Herbal Medicine

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.

A conducive environment has been created with the defeat of LTTE in May 2009, especially in the fields of construction of roads & bridges, culverts and electricity & water supply etc.  Avenues for investment have also been created for projects/sectors such as housing, apparel & textile, telecommunication & IT, banking, power generation, ports and aviation, agriculture etc.

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.

Contact Details of Relevant Sri Lankan Authorities with regard to external Trade and Investment

Ministry of Export Development and International Trade

6th Floor, Rakshana Mandiraya
21, Vauxhall Street
Colombo 2.
Tel: 94-11-2435002, 2435603-4

Department of Commerce

4th Floor, "Rakshana Mandiraya",
21, Vauxhall Street, Colombo 02. Sri Lanka.
Tel: 0094 11 2436115 / +94-11-2329733
Fax: 0094 11 2382490 90 / +94-11-2430233
Email: fortrade@doc.gov.lk
Website : http://www.doc.gov.lk/web/index.php

Board of Investment of Sri Lanka

Level 26, West Tower, World Trade Center,Colombo 01, Sri Lanka.
Tel: (+94 11) 2434403-5, 2435027, 2447531, 2386953-4
Fax: (+94 11) 2447994-5 / (+94 11) 2422407
E-Mail: infoboi@boi.lk

Website : http://www.boi.lk

Sri Lanka Export Development Board

No. 42 Nawam Mawatha,
Colombo-02,
Sri Lanka.
Phone: 94-11-2300705 / 11
Fax: 94-11-2305211
E-mail: edb@tradenetsl.lk
Website : http://www.srilankabusiness.com

The National Chamber of Commerce of Sri Lanka
450, D. R. Wijewardene Mawatha
Colombo 10
Sri Lanka.

Tel:       +94 11 4741788 / +94 11 2689600
Fax:      +94 11 2689596 / +94 11 2689603
E-mail: sg@nccsl.lk
Web: http://www.nccsl.lk

Federation of Chambers of Commerce & Industry of Sri Lanka

"Federation House" No 53,
Vauxhall Lane, Colombo 02,
Sri Lanka.
Tele: +94-11-2304253/4
Fax:  +94-11-2304255 
Email: fccisl@fccisl.lk
Web Sites: http://www.fccisl.lk

50, Navam Mawatha,
Colombo 02,
Sri Lanka
Tel : (0094) 11 - 2421745-7, 2329143, 5588800 (30 hunting lines)
Fax : (0094) 11 - 2437477, 2449352, 2381012
Email : info@chamber.lk
Website : http://www.chamber.lk