Sri Lanka

The United States and Sri Lanka held the sixth bilateral Council meeting under the U.S.-Sri Lanka Trade and Investment Framework Agreement (TIFA) in May 2008. At the meeting, the United States stressed the importance of reducing Sri Lanka's high tariffs on agricultural products; opening the Sri Lankan market for U.S. agricultural biotechnology products; providing more certainty and transparency in Sri Lanka's government procurement, and integrating U.S. technical assistance into the Government of Sri Lanka's overall IPR enforcement plan.

Since the meeting in 2008, the Government of Sri Lanka has lifted the restrictions on imports of poultry from Arkansas, Virginia and Idaho; responded to USG's questionnaire on the Sri Lanka's government procurement process; and issued overdue letters of credit to a U.S. investor in Sri Lanka.

In 2008 and 2009, USTR officials visited Sri Lanka and held talks with high-level Sri Lankan officials to help improve market access and reduce/eliminate trade barriers for U.S. companies.

The seventh TIFA Council meeting is scheduled for the week of October 12th 2009 in Colombo, Sri Lanka. During this week, the Government of Sri Lanka and the United States Government plan to host a private/public conference to discuss economic development opportunities in Sri Lanka in general and the Eastern Province in particular. USTR welcomes the participation of U.S. companies who are interested in doing business in Sri Lanka. Interested parties should contact LaShaun Smith at 202-395-9511 or Victoria Kader at 202-395-3151.

U.S.-Sri Lanka Trade Facts

Sri Lanka is currently our 81st largest goods trading partner with $2.2 billion in total (two way) goods trade during 2008. Goods exports totaled $283 million; Goods imports totaled $2.0 billion. The U.S. goods trade deficit with Sri Lanka was $1.7 billion in 2008.

Exports

Sir Lanka was the United States' 116th largest goods export market in 2008.

U.S. goods exports to Sri Lanka in 2008 were $283 million, up 24.7% ($56.1 million) from 2007.

The top export categories (2-digit HS) in 2008 were: Aircraft ($46 million), Cereals (wheat and rice) ($37 million), Machinery ($31million), Electrical Machinery ($24 million) and Plastic ($16 million).

U.S. exports of agricultural products to Sri Lanka totaled $67 million in 2008. Leading categories include: wheat ($26 million), rice ($11 million).

Imports

Sri Lanka was the United States' 70th largest supplier of goods imports in 2008.

U.S. goods imports from Sri Lanka totaled $2.0 billion in 2008, a 5.0% decrease ($103 million) from 2007.

The five largest import categories in 2008 were: Woven Apparel ($816 million); Knit Apparel ($675 million); Rubber ($156 million); Precious Stones (sapphires) ($61 million), and Machinery ($32 million).

U.S. imports of agricultural products from Sri Lanka totaled $64 million in 2008. Leading categories include: tea (including herb tea) ($20 million), rubber and allied products ($16 million), and spices ($12 million).

Trade Balance

The U.S. goods trade deficit with Sir Lanka was $1.7 billion in 2008, an 8.7% decrease ($159 million) over 2007.

Investment

U.S. foreign direct investment (FDI) in Sri Lanka (stock) was $80 million in 2007 (latest data available), a 16 percent increase from 2006.