Composition and Trends in the Foreign Trade of Sri Lanka with India- An Analysis

Abstract

Prudent foreign trade can foster higher growth rates in an economy, especially in the case of
developing countries. The higher GDP growth rates of South Asian nations, post the liberalization
reforms of India, is an example closer to home. India and her ne
enormity of potential gains that foreign trade could yield and this is reflected in the exponential rise of the
absolute volume of total exports receipts and imports payments of these countries.
been the engine of growth for India who now is the largest as well as fastest growing economy in the
south Asian sub-continent. The incentive to achieve equally impressive growth has encouraged
neighboring states to accelerate their economic integration w
decade. Data from the trade publications of the Department of census and Statistics, Sri Lanka, reflect
that the trade with India has shown growth in terms of total volume of exports to and imports from the
country as well as reflect a higher incidence of dependence on India for imports, over exports. Sri
Lanka’s composition of imports and exports to India is fairly