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Trade relations between India and Sri Lanka, go back to pre-colonial times, however, received a major boost only when India went ahead with liberalization of the Indian economy in 1990s.
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The year 1998 witnessed a major improvement in economic relations when two countries entered into a bilateral Indo-Lanka Free Trade Agreement.
The two countries approved for preferential treatment on 5112 tariff lines & accordingly chalked out an 8-year time table for phasing out tariffs. NTBs (Indian state taxes) were also to be removed regularly.
Lop-sidedness between the two countries was adjusted by special & differential treatment (SDT) |
| Major Srilanka Exports: |
Tea and spices, textiles, diamonds, emeralds, coconut products, rubber manufactures and fish. |
| Major SriLanka Imports: |
Mineral products, textiles fabrics, petroleum, machinery and the transportation.
Presently the major imports partners of the country include: Singapore, China, Hong Kong, Japan Malaysia, and India
Presently the exports partners of the country include: US, UK, India, Belgium and Germany. |
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