Exports under the FTA
During the 9 months after the implementation of Indo-Lanka FTA (April - December, 2000), Sri Lanka has achieved an overall 33% growth in exports to India of which 71% (Rs.640 mn.) accounts for items exported under the FTA. Some of the new products entered into Indian market under FTA includes value added tea, sausages, biscuits, chocolates, ceramics, furniture, metal products, footwear, wooden toys, memory chips, machinery & mechanical appliances and herbal products
Entry to Indian Market
Ceylon Chocolates (Pvt) ltd. Chocolate (Kanbar) Edna Chocolates Chocolates Maliban Biscuits Prima Processed Food Keels Processed Food Mlesna Branded Tea DSI Rubber Slippers / Rubber Products Gloves Lanka (Pvt) Ltd. Knitted Gloves Lanka Walltiles Ceramic Walltiles Damro Furniture Eclar Toys Wooden Toys Tandon Associated Lanka (Pvt) Ltd. Dual inline memory modules Skyspan Asia (Pvt) Ltd. Substitute to conventional roofing systems Tantri Trailers Trailers / long vehicles Link Natural Ayurvedic Medicines
Imports under the FTA
For the same period under the review, the total value of imports to Sri Lanka (from India) accounted for Rs.36,485 mn. of which 8% (Rs. 2,962 mn.) under FTA. The major products imported includes
Inorganic & organic chemicals - Raw materials
Electrical machinery & equipment - Capital goods
Iron, steel, cement, vehicle parts - Intermediate products
Plastic items - Finished products
Investment under the FTA:
The BOI has initiated 41 projects with the benefits granted under the FTA pledging investments to the value of Rs. 8,900 (US$ 100 mn). Six projects have already signed the agreement of which one project has commenced commercial operation and two are being constructed. Another four projects are at pending for the approval while the balance 31 projects are in various stages of negotiations
A summary of projects initiated under the FTA (as at 1st May, 2001)
Commercial Operation Light Engineering Under Construction Light EngineeringWooden Products Approved ChemicalLight Engineering Pending Approval Light Engineering Projects under negotiation Light Engineering/Garments/ Chemical/Plastics/Herbal Products/Electric/Wooden Products/Paper Products etc.
** The products include MDF Board, Stainless steel water tanks, Metal Ingots, hot Water Showers, Milking Machines, Copper alloy ingots, Coolers, Freezing cabinets, Wooden & Steel furniture, Enamel wire, Copper wire, Soap, Low voltage automatic circuit breakers, Synthetic Gloves, Poultry feed, Compressors for refrigerators, Glaze tiles, paper sacks etc.
Distribution of projects under the FTA according to the project status (as at 1st May 2001)
Projects in Commercial Operation
1. SMS metals (Stainless Steel Water Tanks Manufacturers)
SMS Metals, a joint venture between Sri Lanka and Malaysia is a pioneering project which has already commenced commercial operation targeting the Indian market in particular. in Sri Lanka under Indo - Lanka FTA. The Project with an estimated investment of Rs. 40 mn. forecasts an annual export sales of Rs. 7.2 mn. into the Indian market.
Projects Under Construction
1. Merbok Hilir Berhad
Asia's largest manufacturer of Medium Density Fibre (MDF) board, Merbok Hilir Berhad is setting up a MDF factory in a 20-acre plot in one of the newly built EPZ with an investment of US $ 20 mn. The production process is due to commence during the end of the year using rubberwood as the major raw material. The product will be exported mainly to the Indian market.
2. Raymet Indo-Lanka (Pvt) Ltd. (Steel Marketing)
Steel marketing is another joint venture initiated under Indo - Lanka FTA. The Project with an estimated investment of Rs 200 million has started its factory construction in the Horana EPZ.
Approved Projects
1. Indian Rayon
2. Singhal Commodities Ltd.
3. I-E Technics
Source: Borad of Investments (BOI) - Sri Lanka
