Lok Sabha Question No. 2777 (UNSTARRED), answered on 2023-03-17
Subject: Trade between India and Sri Lanka
Ministry: EXTERNAL AFFAIRS
Asked by: Ritesh Pandey

## GOVERNMENT OF INDIA MINISTRY OF EXTERNAL AFFAIRS

ANSWERED ON- 17/03/2023

## LOK SABHA UNSTARRED QUESTION NO-2777

## TRADE BETWEEN INDIA AND SRI LANKA

## 2777. SHRI RITESH PANDEY

Will the Minister of EXTERNAL AFFAIRS be pleased to state :-

- (a) the details of trade between India and Sri Lanka during the last five years, year-wise;
- (b) the impact of the Sri Lankan Crisis on India, politically, diplomatically and economically;
- (c) the flow of Foreign Direct Investment (FDI) into Sri Lanka from India during the last five years, year-wise;
- (d) whether the Government has evacuated all Indians from Sri Lanka, if so, the details thereof and if not, the reasons therefor; and
- (e) the diplomatic and the other efforts made by the Government to help the situation in Sri Lanka?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS (SHRI V. MURALEEDHARAN)

- (a) Trade between India and Sri Lanka:

|   S.No |   Year |   Imports | Exports   | Total Trade   |
|--------|--------|-----------|-----------|---------------|
|      1 |   2017 |       691 | 4,527     | 5,218         |
|      2 |   2018 |       777 | 4,231     | 5,008         |
|      3 |   2019 |       768 | 3,899     | 4,667         |
|      4 |   2020 |       606 | 3,079     | 3,685         |
|      5 |   2021 |       829 | 4,625     | 5,454         |

Source: Central Bank of Sri Lanka

- (b) The economic situation of Sri Lanka has had an impact on implementation of India-assisted developmental partnership programme in Sri Lanka. Further, Indian companies and entities working in Sri Lanka had faced issues such as shortage of raw materials, forex reserves and increase in cost of products and wages.

(All values in USD million )

(c) FDI from India to Sri Lanka:

|   S.No |   Year |   FDI |
|--------|--------|-------|
|      1 |   2017 |   180 |
|      2 |   2018 |   177 |
|      3 |   2019 |   120 |
|      4 |   2020 |    77 |
|      5 |   2021 |   142 |

Source: Central Bank of Sri Lanka

(d)  There were no such requests for evacuation from Indian nationals staying or working in Sri Lanka.

(e) India extended an unprecedented financial and social assistance to Sri Lanka amounting to USD 4 billion in the year 2022 alone. These include a USD 400 mn Currency swap for Central Bank of Sri Lanka (CBSL) in January 2022; US$ 500 million LOC for purchase of petroleum products in February 2022; US$ 1 billion Credit Facility for import of essential items from India in  March 2022; US$ 55 million LOC for the procurement of Urea Fertilizer in June 2022; and deferment of over US$ 2 billion payment liabilities by Central Bank of Sri Lanka under the Asian Clearing Union mechanism till  June 2022. In addition, Government of Tamil Nadu too has extended assistance through supply of rice, milk powder and medicines to Sri Lanka as part of the larger Indian assistance effort. Further, India was the first bilateral creditor of Sri Lanka to give written financing assurances to the IMF in support of the Extended Fund Facility programme.

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(All values in USD million)