Commercial relationship between Sri Lanka and Singapore has fluctuated over the last five years, however, despite the COVID -19 pandemic situations; Sri Lanka has performed considerably well and Sri Lanka’s total exports to Singapore was valued at nearly USD 85 million in 2020 upto November.
Foreign direct investment into Sri Lanka from Singapore was valued at USD 97 million in 2019, ranking at 5th largest FDI investor in Sri Lanka. Over 100 Singaporean businesses operate in Sri Lanka. Speaking at a webinar, organised by Sri Lanka Export Development Board, Nalika Kodikara Counsellor (Commercial), High Commission of Sri Lanka, Singapore said, “They are involved in a number of sectors across the economy, including manufacturing and infrastructure development.”
Moreover, Kodikara said that new normal opportunities have emerged in the areas of E - commerce, innovations and Agri -business sectors. Commenting on Sri Lanka-Singapore Free Trade Agreement (SLSFTA), Kodikara said FDI is the most immediate outcome expected through SLSFTA .Almost 90% of the outflow of FDI from Singapore is mainly concentrated in countries which negotiated FTAs with Singapore bilaterally and regionally.
Under the SLSFTA, for FDIs, priority sectors identified by BOI includes manufacturing –Pharmaceutical, Aquaculture, Prawn farming, Electrical and electronics , ICT, Hospitality and Tourism , Agriculture and Food processing , Construction and infrastructure and etc.
Singapore is Sri Lanka’s fourth largest source of imports. Sri Lanka’s main exports to Singapore are mineral fuel and oils, textiles, alcoholic beverages, Ceylon Tea, sea food and precious and semi-precious stones.
