- Indo-Lanka trade at $3.63 Bn
- โLanka rubber exports up by 4% to $887 Mnโ-Rishad
- PLAST & RUBEXPO โ14 now at BMICH
- โDiscussions on for next level of tradeโ-(HE) Sinha
When it comes to global trade parities of worldโs tenth largest economy, the most balanced trade it conducts is with Sri Lanka. โIndia has the most balanced trade with Sri Lanka among its major trade partners. Both sides are involved in continuing discussions to take economic engagement to the next levelโ said (H.E) Y.K.Sinha, Indian High Commissioner in Sri Lanka on 14 August.
High Commissioner (H.E) Sinha was addressing the singular inauguration event of two expos on 14 August -the second edition of Sri Lanka PLAST and the first edition of RUBEXPO- at BMICH, Colombo. Also taking part were Basil Rajapaksa (Minister of Economic Development), Rishad Bathiudeen (Minister of Industry and Commerce), Anura Siriwardene (Secretary, Ministry of Industry and Commerce), Bandula Egodage (Chairman/CEO-EDB) and Sujatha Weerakoone (DG-EDB). The three day BMICH exposition-a B2B and networking event brings over 160 exhibitors from 15 countries-India, Saudi Arabia, Sri Lanka, Singapore, China, Taiwan, Japan, Italy, Philippines, Malaysia, etc-showcases rubber and polymer technology used by participants. The event is supported by the Ministry of Industry and Commerce and the Export Development Board (EDB), along with Industrial Development Board (IDB), Rubber Research Institute of Sri Lanka (RRISL) and Indiaโs Central Institute of Plastics and Engineering Technology.
โThe participation of more than 100 companies in this event is a manifestation of the re-emergence and diversification of Sri Lankan economyโ said High Commissioner (H.E) Sinha, and added: โIndia and Sri Lanka enjoy robust economic and commercial relations exemplified by the 14 year Free Trade Agreement. India has the most balanced trade with Sri Lanka among its major trade partners. India being not only the largest source of imports for Sri Lanka but also Sri Lankaโs third largest export destination after USA and UK. Bilateral investments with Sri Lanka have also witnessed a substantial increase in recent times. Based on the national synergies and complementarities between both countries, both sides are involved in continuing discussions to take economic engagement to the next level. I am certain that Sri Lanka Plast 2014 contributes to further consolidation of economic engagement between India and Sri Lanka.โ
According to the Department of Sri Lanka, India was the biggest supplier to Sri Lanka in 2013, followed by China. Imports from India to Sri Lanka was at $3.09 Bn in 2013 while total Indo-Lanka trade at $3.636 Bn. Total trade โunder ISFTAโ reported at $748.2 Mn, rising by a strong 40% in 2013 from 2012โs $536 Mn. Also in Y2013, 65% of Lankaโs total exports to India were exports โunder ISFTAโ. India is a well-known member of BRICS as well as a major economy within G20 grouping. Indian investment flows to Sri Lanka in 2012 stood at $158.20 Mn. According to the EDB, Sri Lankaโs top three exports to India in 2013 were boats, animal feed and pepper.
Rishad Bathiudeen (Minister of Industry and Commerce), addressing the event, said: โPlastic and rubber are two sectors that play a huge role in our everyday lives as well as in our GDP. In 2013, our natural rubber exports stood at $71.6 million. Rubber product exports alone in 2013 stood at strong $ 887 Million, rising by 4% from 2012โs $ 856 million. Our plastic exports only have stood at $60.11 Mn increasing by 5% from $ 57 Million in 2012. I should stress that we are strongly encouraging value addition for our rubber exports. Still I should also stress that these two sectors have been rightly identified as thrust Industries and expected to contribute significantly to the national economic growth, to meet our planned 7.8% GDP target this year under the vision of His Excellency the President Mahinda Rajapaksa.โ
Lankan Rubber and Plastic exporters visiting the inauguration event praised the effort. โOur company is exporting rubber products and slippers to India in fairly large quantities. I ship at least one full container load (FCL) per month to Indiaโ said Kulathunga Rajapaksa (MD โ DSI Samson Group), the reputed Lankan branded footwear maker who was visiting the inauguration, and added: โThis event is a good effort to promote our products, even to India which is a huge market. The cost of transferring products from Delhi to Chennai is more than cost of shipping from Colombo to Chennai, giving Lankan exporters advantage. There are also some non-tariff barriers at that end and a fair amount of that has been ironed out helping us Lankan exporters. We can further improve and there is space for it. Our exporters need to vigorously go for Indian market just as Indian exporters do here.โ
In 2013, India ranked at 10th among importers of Lankan rubber finished products importing $ 19 M of rubber products from Sri Lanka.
Leader of All Ceylon Makkal Congress