Sri Lanka
reported a trade deficit corresponding to 965 Million USD in January of 2012.
Historically, from 2003 until 2012, Sri Lanka Balance of Trade averaged
-1038.2000 Million USD success an all time high of -239.5000 Million USD in
September of 2003 and a record low of -2974.0000 Million USD in December of
2011. Sri Lanka
exports mostly textiles and garments (40% of total exports) and tea (17%).
Others include: spices, gems, coconut food, rubber and fish. Main export
partners are United States, United Kingdom, Germany, Belgium
and Italy.
Sri Lanka imports petroleum, textile fabrics, foodstuffes and machinery and
transportation equipment. Main import partners are India, China, Iran and Singapore. This page includes a
chart with chronological data for Sri Lanka Balance of Trade.
The
balance of trade is the difference between the monetary value of exports and
imports in an country over a certain period of time. A positive sense of
balance of trade is known as a trade surplus and consists of exporting more
than is imported; a negative balance of trade is known as a trade deficit or,
informally, a trade gap. The balance of trade forms part of the current
account, which also includes other transactions such as income from the
international investment position as well as international aid. If the current description
is in surplus, the country's net international asset position increases
correspondingly. Equally, a deficit decreases the net international asset
position. The Balance of Trade is identical to the divergence between a
country's output and its domestic demand - the difference between what goods a
country produces and how many goods it buys from abroad; this does not contain
money respent on foreign stocks, nor does it factor the concept of importing
goods to produce for the domestic market.
Sri Lanka State Trading (General) Corporation Ltd., is a fully government
owned , well established organisation functioning under the purview of the
Ministry of Co-operatives and internal trade. STC has been in the big business
over more than 30 years whilst catering to both public and private sectors.
Today, the company deals with a wide range of products namely, Office
Stationery and Equipments, Construction and hardware items, ICT Products,
Office Furniture and Interior Decors, FMCG, Automotive Batteries & Tyres,
Agricultural Products, Chemical Products etc. In addition, STC has taken steps
to market world reputed brands such as 'Double A' photocopy papers, Frostair
Airconditioners, Yokohama tyres, HP & Fugitsu Laptops, 'Exide' automotive
batteries, 'Orange' Electrical items etc.
STC operates under the guidance of the government with
a long term goal of developing Sri Lanka by providing the very best to
consumers, and ensuring stability in market price for various goods, and
thereby protecting consumer welfare. With this in mind the STC has partnered
with Intel, Microsoft, and HP Lanka to make computing affordable and in doing
so developing and laying a springboard for IT usage.
Under this scheme, laptops and
desktop computers will be offered at very reasonable prices on
installment-based payment schemes that can be tailored to suit any budget. HP
computers will be powered by Intel processors and Genuine Microsoft operating
systems while being maintained under HP’s three-year company warranty, ensuring
the security and longevity of the product, and offering the very best
experience to the shopper, and in doing so driving the growth of IT in the
nation.
"To develop and promote Sri Lanka's foreign trade
relations at bilateral, regional and multilateral levels by the effective
implementation of rule trade policy, with a view to raising the standards of
living and realizing a higher quality of life through the increase of total
production, income and employment levels, thereby actively causative to the
overall economic growth of Sri Lanka".
P.D Fernando, the new Director General of Department of
Commerce was felicitated by the NCE at the Council Meeting held in May at the
Taj Samudra.
He was presented with a plaque in recognition of his invaluable military to exporters, during his many years of service at the Department of Commerce to overseas Trade Missions. Fernando was known among many exporters as a person who had always strived to assist Sri Lankan exporters to the best possible extentby effectively engaging the bureaucrats and other relevant persons in overseas markets, who were impediments to Sri Lankan exporters. He requested member exporters of the meeting room to unhesitatingly
He was presented with a plaque in recognition of his invaluable military to exporters, during his many years of service at the Department of Commerce to overseas Trade Missions. Fernando was known among many exporters as a person who had always strived to assist Sri Lankan exporters to the best possible extentby effectively engaging the bureaucrats and other relevant persons in overseas markets, who were impediments to Sri Lankan exporters. He requested member exporters of the meeting room to unhesitatingly
Sri Lanka is a South Asian island is
situated 29 km off southeastern coast of India. Palk Strait separates Sri Lanka from India. It is 350km (217miles) elongated
and it's maximum width is 180km (112miles). Its total land area is about 64.740
sq. km.
Sri Lanka has its own contrasts; its own fortunes and misfortunes. Over thousands of years travellers to this small island were surprised by its physical beauty and the richness of its culture. Many described it as a Paradise Isle and as the Pearl of the Orient. Then for many years it went from beginning to end a difficult period under colonial rule. At present it goes through its most difficult times in its history due to the continuing ethnic conflict.
Sri Lanka has its own contrasts; its own fortunes and misfortunes. Over thousands of years travellers to this small island were surprised by its physical beauty and the richness of its culture. Many described it as a Paradise Isle and as the Pearl of the Orient. Then for many years it went from beginning to end a difficult period under colonial rule. At present it goes through its most difficult times in its history due to the continuing ethnic conflict.
For Centuries, Sri Lanka
has been associated with the international trade in gems & jewellery, and
has been referred to as the “Cradle of Treasures” due to its wealth of precious
gemstones. The art of jewellery making and Sri Lanka’s gem industry have been
widely acclaimed in literary works dating as far back as 250 B.C in the Legends
of Arabia, folk-lore of China,India, Indonesia and in the tales of early
European travelers to the East, which describe in grate detail the fabulous
gems & jewellery of Sri Lanka.
The Earth’s greatest meditation of fine gems could be found within Sri Lanka’s land
area of 65,525 square kilometers. Geo-scientific opinion estimates that 90% of
the Island’s land mass is potentially gem
bearing. Sri Lanka ranks
with Burma, Brazil, South
Africa and Thailand as one of the five most
important gem bearing nations of the world.
A unique feature of Sri
Lanka’s gem mines is that an assortment of
gems such as Spinels, Corundums (Blue and Star Sapphires, Rubies) Cat’s Eyes,
Zircon and many others are found in a single gem pit. Gem mining in Sri Lanka is
almost entirely confined to sedimentary deposits. Gems as a resource belongs to
the management, however licenses for mining could be obtained for privately
owned lands. Most often gem mining is done in agricultural lands during
off-season.
The techniques of mining and processing in Sri Lanka though labour intensive
is very efficient compared with gem mining in other developing countries and
the recovery of fine gems as small as one millimeter or less is assured. shield
of the environment is ensured by law.
Product
Sri Lanka’s
breathtaking natural heritage is blessed with over 150 varieties of gems
including Blue, Pink and Yellow Sapphires, Rubies, Padmaradchas, Star
Sapphires, Star Rubies, Alexandrites, Cats’ eyes, Spinels, Aquamarines,
Topazes, Zircons, Garnets, Tourmalines, Moonstones, Quartzes and variety of
rare gems. Amongst the outstanding gem stones that Sri Lanka has produced in the up to
date era is the Blue Giant of the Orient (466 cts), Logan Blue Sapphire (423
cts), Blue Belle of Asia (400 cts), Rossar Reeves Star Ruby (138.7 cts), Star
of Lanka (393 cts. Star Sapphire) and Ray of Treasure (105 cts. Cat’s Eye). The
first three gems are on display at the Smithsonian Institute in Washington DC,
USA. The
Blue Sapphire is Sri Lanka’s
gem supreme and can be considered, the highly prized of all gems. It is second
only to the equilateral in hardness. The Blue sapphire is the National Stone of
Sri Lanka.
Skilled labour at competitive rates combined with a global reputation as a
country with a friendly and forward looking investment climate has created an beautiful
base for cutting and polishing diamonds in Sri Lanka.
The country’s highly literate and trainable work force is the locomotive of its success as a cutting centre. Adaptability to new technology has helped the industry produce polished diamonds with high quality makes it is increasingly recognized internationally.
Sri Lanka ’s specialty is small diamonds of extraordinarily high quality, which are imported sawn or cleaved rough. In addition to the traditional brilliant cut, many cutting companies handle other specialized shapes and cuts, particularly tapers, baguettes and princes etc.
The industry in Sri Lanka is highly organized and the factories are equipped with modern bruting machines and polished wheels mainly from Belgium, Israel, Thailand, India and China.
The country’s highly literate and trainable work force is the locomotive of its success as a cutting centre. Adaptability to new technology has helped the industry produce polished diamonds with high quality makes it is increasingly recognized internationally.
Sri Lanka ’s specialty is small diamonds of extraordinarily high quality, which are imported sawn or cleaved rough. In addition to the traditional brilliant cut, many cutting companies handle other specialized shapes and cuts, particularly tapers, baguettes and princes etc.
The industry in Sri Lanka is highly organized and the factories are equipped with modern bruting machines and polished wheels mainly from Belgium, Israel, Thailand, India and China.
Sri Lanka’s
jewellery makers have refined their hereditary skills over centuries, to attain
the highest standards in exquisite craftsmanship and sophisticated creativity
with the modern touch. With the addition of the latest expertise in design and construct,
and a new focus on design excellence, Sri Lanka is emerging as a design centre
offering high quality jewellery collections of Silver, Gold & Platinum.
Jewellery of Sri Lankan origin is hallmarked by an autonomous Authority,
having membership in The Convention on the Control and Marking of Articles of
Precious Metals (Hallmarking Convention) and the International connection of
Assay Offices. The Gemological Laboratory certifies the validity of gemstones.
The laws in Sri Lanka
guarantees copyright protection of designs. Simplified import-export procedure
offers intercontinental buyers peace of mind and ease of operation when dealing
with Sri Lanka.
Sri Lanka’s
membership of the conference on the ATA carnet, facilitates the smooth
transportation of jewellery.
An Import Export Gem Office at the Cargo
Village at the International Airport
in Katunayake expedites the clearance of rough gemstones and export of cut
& polished gems, jewellery and diamonds.
A Sri Lanka-Korea Economic Co-operation Committee was set up
on 4th November 1982, under the aegis of the Ceylon Chamber of Commerce. The
objectives of the committee are to attract Korean investment to Sri Lanka, to promote two-pronged trade between
the two countries with weight on the promotion of exports to Korea, to encourage the transfer of expertise
from Korea to Sri Lanka and to encourage the growth of tourism
from Korea to Sri Lanka. Over
all, the economic co-operation board has met nine times, five times in Sri Lanka and four times in Korea.
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In relation to coconut fibre and fibre based products, there
is significant potential to further expand exports of bristle, twisted fibre,
geo textiles, coir fibre pith, various kinds of brushes, door mats, matting as
well as rubberised coir based products for the automobile industry. There seems
to be a number of areas where upward interest has been observed in new
applications for rubberised coir fibre, such as in civil construction weed
killer mats. These can also be explored.
The trend for environmentally friendly biodegradable natural products like geo textiles manufactured from coir fibre, has opened opportunities for export to Korea.
There is also a lot of potential to expand exports of activate carbon to Korea since the total imports are in the region of about 12,000 million tons per year.
Other products with enormous potential are floricultural products particularly rooted plants, uprooted cuttings/cane, tissues, cultured plants, cut flowers, cut pretty leaves and flower seeds.
There is also opportunity for exports of calibrated gemstones, diamonds and jewellery, with prospects for collaboration with Korean partners.
Since Korea imports more than US$ one billion worth of garments, in attendance are also enormous prospects for export of Sri Lankan textiles and textile based products, which at the moment is only Rs. 200 to 300 million.
Other potential product areas are limonite, graphite and silica sand, canned and processed fruits and juices, processed gherkins, baby corn, essential oils and spices.
The trend for environmentally friendly biodegradable natural products like geo textiles manufactured from coir fibre, has opened opportunities for export to Korea.
There is also a lot of potential to expand exports of activate carbon to Korea since the total imports are in the region of about 12,000 million tons per year.
Other products with enormous potential are floricultural products particularly rooted plants, uprooted cuttings/cane, tissues, cultured plants, cut flowers, cut pretty leaves and flower seeds.
There is also opportunity for exports of calibrated gemstones, diamonds and jewellery, with prospects for collaboration with Korean partners.
Since Korea imports more than US$ one billion worth of garments, in attendance are also enormous prospects for export of Sri Lankan textiles and textile based products, which at the moment is only Rs. 200 to 300 million.
Other potential product areas are limonite, graphite and silica sand, canned and processed fruits and juices, processed gherkins, baby corn, essential oils and spices.
The Sri Lanka Export Development Board (SLEDB commonly known as the EDB) is
the premier state organisation dealing with the promotion and development of
exports. It was established in 1979 under the Sri Lanka Export enlargement Act
No. 40 of 1979, and now functions under the Ministry of Industry &
Commerce.
The Chairman is the Chief Executive who is assisted by the Director General and the Additional Director General. Its day-to-day functions are carried out by several divisions each of which is headed by a Director.
The Chairman is the Chief Executive who is assisted by the Director General and the Additional Director General. Its day-to-day functions are carried out by several divisions each of which is headed by a Director.
The Export Services Division provides assistance and creates opportunities
for local professional services companies including ICT,BPO,KPO and Electronic harvest
to extend their business worldwide, thereby increasing export sales and
employment prospects in the country through integrated programmes such as
supply development, quality improvement and training, initiate product
development and adaptation of such products / services to export market
requirements. It offers assistance for the ICT/BPO/KPO exporters for
market development and consultative services to small and mid-sized businesses
and sponsors & co-sponsors educational seminars and training programs for
exporters and potential exporters.
In the Gulf region, the UAE is the largest export market for Sri Lanka, the largest source of imports to Sri Lanka, and the largest investor in Sri Lanka. The
UAE is also home for a large number of Sri Lankan expatriate workers among Gulf
countries. The number of tourists from the UAE visiting Sri Lanka is also on the increase and the UAE
has become the largest tourist supplier among the Gulf countries to Sri Lanka in
2011.
ri Lanka has been trading with the UAE for a significant period of time and
it continues to remain one of Sri Lanka's major trading partners ranking 7th
position of top export market to Sri Lanka. Sri Lanka exported US$ 246 Mn worth
of goods to UAE in 2010. The total trade between the two countries was at US$
570 Mn in 2010, an increase of US$ 65 Mn compared to the figures registered in
2009. However, the balance of trade has been in favour of the UAE. Interesting
to note that the two way trade jumped to US$ 807 Mn during January – September
2011, pushed up by rice and oil imports which accounted for over one third or
USD 267 million of imports from UAE.
Tea, natural rubber, coconut oil, desiccated coconut, copra, cashew nuts,
essential oil, fruits and vegetables, processed food, sea food, rubber products
and toys are the chief export commodities from Sri Lanka to the UAE. However, tea
has been the major export commodity (accounting 60%) of Sri Lanka to
the UAE.
Among the items imported from the UAE, crude oil, diesel, gas oil and
lubricants are the major trade in commodities accounting for 24% of whole
imports. Other items include urea, lentils, iron & steel and machinery
& parts.
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| Trade in Srilanka |
