Sri Lanka–Korea trade further strengthened

Trade between Sri Lanka and Korea will increase by about 20 percent this year, said Deputy Minister for Planning and Coordination/Ministry of Knowledge Economy Korea, Jeong Marn-Ki addressing a Sri Lanka-Korea luncheon meeting on Wednesday. He said that there is enormous potential to boost trade and investments between the two countries which is currently in favour of Korea. Trade between the two countries increased from around $ 10 million in 1977 to around $ 430 million last year.

An MoU between the Ministry of Power and Energy and the government of Korea was signed on Wednesday to set up joint venture projects in the power and energy sector.

Korean investments in Sri Lanka are centred on textiles, construction and infrastructure development. Around 54 Korean investment companies operate in Sri Lanka.

Korea is a major trading partner of Sri Lanka with exports of around $ 30.9 million in 2010. Korea employs a large number of Sri Lankan skilled workers. Both countries marked 35 years of diplomatic relations this year.

Sri Lanka exports rubber products, woven fabrics, textiles and garments, electrical machinery and parts, apparel clothing accessories, machinery and parts, mixed coir fibre, and fibre products, coco peat, leather travel goods and bags and imports woven fabrics, yarn and thread, synthetic fibres, electrical and electronic items, machinery and machinery parts.

Sri Lanka, Korea Economic Cooperation Committee President Mahen Kariyawasan said that trade between Sri Lanka has grown significantly over the years and added that there is huge potential to expand exports of value added rubber products such as solid rubber tyres, footwear for industrial use and healthcare products.

He said that there is significant potential to expand exports of coconut fibre based products such as brushes, door mats, matting and coir based products for the automobile industry.

Korea Importers and Manufacturers Association Chairman Ju Tae Lee said that the Expo 2012 showcased Sri Lanka's export potential and opportunities to promote trade between Sri Lanka and Korea. A high powered Korean business delegation visited Sri Lanka for the Expo 2012 trade exhibition.

There is also a lot of potential to expand exports of activated carbon to Korea since the total imports are in the region of about 12,000 million tons per year.

Floricultural products, activated carbon, calibrated gemstones, diamonds and jewellery, limonite, graphite and silica sand, canned and processed fruits and juices, processed gherkins, baby corn, essential oils and spices are some of the other potential export products.

Deputy Minister of Economic Development Lakshman Yapa Abeywardhana said that cooperation with Korea covers many areas which include the construction of the first solar power plant in 2009 with a Korean government grant.

Korean assistance to Sri Lanka also includes the ICT sector, water supply, road development, IT and healthcare. -LF