Sri Lanka’s Economy at a glance

Sri Lanka is an island located in the Indian Ocean. Ancient chronicles mention that there was a direct trade route between West India and Sri Lanka long before even the 6th century B.C. The strategic location of Sri Lanka connected the Mediterranean Sea — via the Red Sea, Persia, and India — to China and the Islands of Indonesia. Sri Lanka is located at the crossroads of these sea routes: The Ancient Silk Route. Sri Lanka is believed to have had a hand in supplying the Roman nobility with spices, perfumes, silks, ivory, and pearls. Roman coins of the A.D. fifth century have been found in many places in the country. Sri Lanka’s economy which was earlier based on Agricultural products has been gradually transformed into an Industrial and services-based economy during the past few decades. In 2021, the contribution of the Agricultural sector to the country’s GDP is 6.9% while the Industrial and Service sector contributions were marked as 25.9% and 58.3% respectively. Foreign trade is an important segment of the Sri Lankan economy. Major exports include Garments, Tea, Rubber, Cinnamon, Tyres, Coconut products, foodstuffs, Gems, and Jewellery. Sri Lanka is the largest exporter of black tea in the world. USA, India, EU region, UK, UAE, and China is among the largest export markets for Sri Lanka. Major import items include petroleum, consumables, machinery and capital equipment, motor vehicles, and various manufactured goods.  

Sri Lanka-Bangladesh Trade Relations

The value of Sri Lanka’s exports to Bangladesh recorded its highest value in 2021 with USD 222.06 million. The trade balance has been in favor for Sri Lanka. On the import front, Sri Lanka’s imports from Bangladesh showed an increasing trend during the period.

Preferential Trade

• South Asian Preferential Trading Arrangement (SAPTA)
• The Agreement on South Asian Free Trade Area (SAFTA)
• The Global System of Trade Preferences (GSTP)
• Asia Pacific Agreement (APTA) and
• Proposed Agreement on the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)

Scope for further expansion of Sri Lanka’s Exports to Bangladesh

• Cinnamon
• Copra
• Black Tea
• Cement clinkers
• Apparel
• Palm oil (excl crude) & fractions
• Solid or cushion tires of rubber
• Pepper
• Desiccated coconuts

Proposed Bangladesh Sri Lanka Preferential Trade Agreement (PTA)

As of now, Sri Lankan investments in Bangladesh are close to USD 2.5 Billion, making it the third highest overseas investment venture from Sri Lanka and one of the largest investors in Bangladesh. The Sri Lanka High Commission has continued to initiate and encourage investments while participating in several meetings and policy briefings on investments. There is a need to undertake high profile showcasing of Sri Lankan products and investor promotions in Dhaka and Chittagong and reverse investments in Sri Lanka.

However, Bangladesh Investments in Sri Lanka is at a minimal value. Bangladesh has invested US$ 3.9 Mn in 04 projects including logistics, apparel, and manufacturing. Bangladesh is the 39th investment partner of Sri Lanka.

• Manufacturing – Pharma, High Value added apparel, Electronics and electrical
• IT – BPO and KPO, Software Development, IT training Institutes, Emerging tech
• Tourism & Leisure – Agro/Eco Tourism, Adventure/ Thrill tourism, Luxury Hotels, MICE tourism
• Agriculture & Food Processing – Rubber, Agri/ processed food, Fisheries
• Shipping & Logistics

Investment opportunities at Port City Project, Colombo

For more information, please contact Commercial Division: sltradedhaka@gmail.com

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