Sri Lanka and India trade relations are expected to grow by 20% annually as per recent reports. Today, Srilanka imports goods worth Rs.272 billion from India, while exports goods worth Rs. 76 million to India.
Sri Lanka exports to India include: Vegetable and animal fat oils, copper products, electrical machinery, coffee, tea, rubber.
Srilanka imports from India include: Mineral Fuel and its products iron and steel, automobiles, pharmaceuticals and cotton. Post Free Trade Agreement (FTA) period, India’s exports of iron and steel increased by four times, pharmaceutical by three times.
India-Sri Lanka signed FTA in December 28, 1998 and has been in operation since March 1, 2000. The FTA today consists of 5,112 items, for duty free or preferential treatment.