According to allcitypopulation, Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka, is an island nation located in South Asia. It is situated just off the southeast coast of India and is separated from the Indian subcontinent by the Palk Strait. With a population of over 21 million people, Sri Lanka is one of the most densely populated countries in South Asia. The country covers an area of approximately 65,610 square kilometers and has a tropical climate with two distinct monsoon seasons. According to Petwithsupplies, the capital city of Sri Lanka is Sri Jayawardenapura Kotte (administrative capital) with a population of 108,000 (2012 census), and Colombo (commercial capital) with a population of 606,000 (2019). Other major cities include Kaduwela, Maharagama, Dehiwala-Mount Lawinia, Moratuwa, Negombo (Migamuwa), Kalmunai (Galmune), Kandy (Maha Nuwara), Galle (Galla).
Sri Lanka’s geography is dominated by several mountain ranges including the Central Highlands which spans across much of the interior and reaches its highest point at Mount Pidurutalagala (2,524 meters). The coastal plains are mostly flat with some areas featuring marshland and mangrove swamps. There are also numerous rivers and streams that flow through Sri Lanka’s interior as well as several natural harbors along its coastline.
Sri Lanka has a mixed economy with both private and public sectors playing an important role in economic activity. The country’s main exports include textiles and apparel, rubber-based products, tea, coconut products and seafood while its imports include petroleum products, machinery parts & components as well as chemicals & pharmaceuticals among other goods & services. Tourism also plays an important role in Sri Lankan economy with tourists visiting for its beautiful beaches and cultural sites such as Anuradhapura or Sigiriya Rock Fortress among many others.
The government of Sri Lanka has implemented several economic reforms to boost growth including increasing foreign direct investment (FDI) which has helped to attract more investment from abroad leading to increased economic activity in recent years. Additionally, efforts have been made to reduce poverty levels throughout the country by providing access to education & healthcare services while encouraging entrepreneurship & innovation amongst the population.
Overall, Sri Lanka’s economy continues to grow steadily despite some setbacks such as political unrest or natural disasters due to its strong base in agriculture & manufacturing sectors combined with increase foreign direct investment (FDI) into key industries such as tourism & IT services among others which has helped drive growth over recent years.
Foreign Trade of Sri Lanka
Sri Lanka has a strong foreign trade sector that is an important part of its economy. The country’s main exports include textiles and apparel, rubber-based products, tea, coconut products and seafood while its imports include petroleum products, machinery parts & components as well as chemicals & pharmaceuticals among other goods & services.
Sri Lanka’s main export partners are the United States, India, the United Kingdom and Germany. The country’s main import partners are India, China, the United Arab Emirates and Singapore. In 2018, Sri Lanka exported $12 billion worth of merchandise while importing $20 billion worth of merchandise. This resulted in a trade deficit of $8 billion for the year.
The government of Sri Lanka has been encouraging foreign investment in order to boost exports and reduce imports in order to reduce the trade deficit. To this end it has implemented several reforms including reducing tariffs on imported goods and services as well as providing incentives for foreign investors such as tax holidays and duty-free imports of machinery & raw materials among other measures.
The government has also taken steps to improve the ease of doing business in Sri Lanka by introducing a range of reforms including reducing bureaucracy related to setting up businesses or obtaining licenses as well as simplifying procedures related to foreign trade such as customs clearance among others. Additionally, efforts have been made to improve infrastructure such as ports or roads which help facilitate international trade both within Sri Lanka and with other countries around the world.
Overall, Sri Lanka’s strong foreign trade sector is an important part of its economy that helps support economic growth throughout the country by providing access to global markets for both exports & imports while also providing employment opportunities for many people living there. The government continues to take steps to improve ease of doing business in order to attract more foreign investment into key industries such as tourism & IT services which will help drive further growth over coming years.
Major Trading Partners of Sri Lanka
Sri Lanka’s major trading partners are the United States, India, the United Kingdom, Germany, China, and the United Arab Emirates. The country’s exports mainly consist of apparel and textiles, tea, spices and seafood while its imports include petroleum products, machinery parts & components as well as chemicals & pharmaceuticals among other goods & services.
The United States is Sri Lanka’s largest trading partner with bilateral trade amounting to $3.4 billion in 2018. This figure is comprised of $1.6 billion in exports to the US and $1.8 billion in imports from the US. The main exports from Sri Lanka to the US are apparel & textiles while some of its imports include petroleum products such as gasoline and diesel as well as machinery parts & components such as engines and generators among others.
India is Sri Lanka’s second largest trading partner with bilateral trade amounting to $2 billion in 2018 which is comprised of $1 billion in exports to India and $1billion in imports from India. The main exports from Sri Lanka to India are tea and seafood while some of its imports include pharmaceuticals such as antibiotics and antimalarials along with machinery parts & components such as pumps and motors among others.
The United Kingdom is Sri Lanka’s third largest trading partner with bilateral trade amounting to $1.9 billion in 2018 which is comprised of $0.8billion in exports to the UK and $1billion in imports from the UK. The main exports from Sri Lanka to the UK are apparel & textiles while some of its imports include petroleum products such as gasoline/diesel along with chemicals such as fertilizers among others.
Germany is Sri Lanka’s fourth largest trading partner with bilateral trade amounting to $0.9billion in 2018 which is comprised of $0.5billion in exports to Germany and $0.4billion in imports from Germany. The main exports from Sri Lanka to Germany are apparel & textiles while some of its imports include machinery parts & components such as engines/generators along with chemicals such as industrial grade resins among others.
China is Sri Lanka’s fifth largest trading partner with bilateral trade amounting to $0.8billion in 2018 which is comprised of $0.4billion in exports to China and $0.4billion in imports from China. The main exports from Sri Lanka to China are apparel & textiles while some of its imports include machinery parts & components such as engines/generators along with chemicals such as industrial grade resins among others.
Major Imports and Exports of Sri Lanka
Sri Lanka is a small but vibrant trading nation in South Asia, with exports and imports accounting for approximately 70 percent of the country’s GDP. Major imports and exports of Sri Lanka include textiles, apparel, seafood, tea, rubber products, chemicals, and machinery parts & components.
Textiles and Apparel: Textiles and apparel are Sri Lanka’s largest export to the global marketplace and account for over 50 percent of all exports. The US is the country’s largest export market for textiles and apparel followed by India and the UK. These items are mainly exported to major garment retailers around the world including Walmart, H&M, Gap Inc., Zara, Uniqlo etc. Sri Lanka also imports a range of fabrics from countries like China to manufacture garments within its own factories.
Seafood: Sri Lanka is well known for its seafood which includes fish, prawns and other marine life. These items are mainly exported to countries like India, Japan, USA etc., with India being the largest export market for seafood from Sri Lanka. The country also imports various kinds of seafood from other countries such as Thailand and Vietnam to meet domestic demand as well as re-export them after processing in local factories.
Tea: Tea is one of the most popular beverages in the world with demand increasing steadily over time both in domestic markets as well as international ones. Sri Lanka is one of the leading producers of tea in the world with a majority of it being exported to various countries like Russia, Turkey, Pakistan etc., with India being its largest export market by far. The country also imports some types of teas from other producing nations such as Kenya and China to meet domestic demand or re-export them after processing locally.
Rubber Products: Rubber products such as tyres are amongst some of Sri Lanka’s major exports to international markets such as China which is its largest export market for rubber products followed by India. The country also imports a range of rubber products mainly from Malaysia but also from Thailand for use domestically or re-export them after processing locally inside factories located within the country’s borders
Chemicals: Chemicals form an important part of Sri Lanka’s exports with fertilizers being one of its major exports to countries like India which is its biggest export market followed by Bangladesh & China amongst others. The country also imports a range of chemicals such as industrial grade resins mainly from China but also from Japan amongst others.
Machinery Parts & Components: Machinery parts & components form an important part in terms of both import & export activities carried out by Sri Lankan companies. Its main exporters include engines/generators which are exported mainly to USA, UK, Germany, Malaysia etc., while it also imports petrol/diesel along with pumps/motors among others from countries like Saudi Arabia, UAE, Singapore etc..
Overall, these major import & export activities form an integral part in terms making up a large portion (approximately 70%)of total GDP generated within this small South Asian nation every year.