Lanka exports to world’s seventh largest economy grow by strong 37%

Tuesday, 22 January 2013 00:00 - - {{hitsCtrl.values.hits}}

Having increased its exports in 2012, Sri Lanka is keen to expand its current trade with the world’s seventh largest economy even further. “Our total bilateral trade of $ 79 million in 2011 shows that there is strong unrealised growth potential for our trade with Brazil. There is also trade growth in the first half of 2012,” said Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka on 21 January.

Bathiudeen said this in the aftermath of his meeting with Marcelo L da S. Vasconcelos, Brazil’s Ambassador to Sri Lanka and the Maldives on 21 January. Vasconcelos was making a courtesy call on Bathiudeen at the Ministry of Industry and Commerce premises.

According to the Department of Commerce, Sri Lanka’s total trade in 2011 stood at US$ 78.51 million. In 2012 (January to June), the total trade turnover between two countries was US $ 32.21 million, showing a 7.25% increase. Brazil is one of the leading sugar suppliers to Sri Lanka. Sri Lanka’s total exports to Brazil have increased by 37.21% in 2011 over the previous year.

The balance of trade was in favour of Brazil in 2009, 2010 and 2011, though it was in favour of Sri Lanka in 2007 and 2008. Sri Lanka’s total exports to Brazil have increased by 37.21% from US$ 22.95 million in 2010 to US$ 31.49 million in 2011. Sri Lanka’s major export items to Brazil in 2011 were gloves, apparel, retreaded or used pneumatic tyres of rubber, new pneumatic tyres of rubber, yarn, optical photographic, natural rubber and cotton.

“We are also keen to strengthen bilateral cooperation with Sri Lanka further. We also look forward to Sri Lanka’s support in our international trade initiatives,” responded Vasconcelos, adding: “Sri Lanka’s tea is very good and tasty.”

“In the new growth phase, thanks to the leadership of President Mahinda Rajapaksa, in 2012 we spent more than $ 2.5 billion to upgrade our infrastructure. We now invite Brazilian investors to Sri Lanka to invest in multiple sectors,” said Bathiudeen.

In March 2011, Brazilian Foreign Minister Antonio Patriota too announced (in Colombo) that Brazil is keen on in investing in Sri Lanka’s post war economy, adding that Brail can supply aircraft for tourism in Sri Lanka. Brazil’s ‘Embraer’ is the third largest aircraft manufacturer in the world.