FOREIGN TRADE REGIME OF SRI LANKA

Multilateral Trade

Sri Lanka, a founder member of the GATT/WTO, continues to be a strong promoter of free trade.  Its foreign trade regime is characterised by a combination of the GATT/WTO disciplines and a series of market-oriented reforms, which were introduced unilaterally by several successive governments since 1977.  The liberal trade policies strive at further integrating Sri Lanka into the global economy, while holding in balance the domestic stakeholder interests.  

Imports are primarily regulated through border tariffs with hardly any quantitative restrictions. Sri Lanka currently maintains a simplified four-band tariff structure, where over 50% of the tariff lines enjoy zero (MFN) duty.  

However, it is pertinent to mention that a few product categories such as alcohol, cigarettes, perfumes and automobiles are subject to higher tariffs.

Preferential Trade

Sri Lanka is a signatory to the following free / preferential trade agreements, which grant tariff concessions to a wide range of products in a number of key markets.

- Indo-Sri Lanka Free Trade Agreement
- Pakistan-Sri Lanka Free Trade Agreement
- South-Asian Free Trade Area (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka)
- Asia-Pacific Trade Agreement (Bangladesh, China, India, South Korea, Laos and Sri Lanka)
- Global System of Trade Preferences – GSTP (Over 40 countries)

Sri Lanka also enjoys preferential market access under the Generalized System of Preferences (GSP) schemes of the following countries.

Australia    Canada            European Union
Japan        New Zealand    Norway (GSP+)    
Russia        Switzerland     United States

An ideal destination for trade and investment

The 2013 “Ease of Doing Business” Survey by the World Bank Group has ranked Sri Lanka as the easiest country to do business within the entire South Asian region.  A host of factors, including peaceful and business friendly environment, supportive government policies, educated and easily adaptable workforce, strategic location and connectivity, preferential access to key markets, fast improving social infrastructure and quality of life have made Sri Lanka an ideal destination for both trade and investment.

Useful Links

Department of Commerce
Department of Sri Lanka Customs
Board of Investment of Sri Lanka
Department of Registrar of Companies
National Intellectual Property Office
Sri Lanka Tourism Promotion Bureau
Sri Lanka Export Development Board