Sri Lanka’s trade with Italy has recorded a considerable increase during the recent years, except in 2009. The value of total trade between the two countries registered at US $ 604.49 Mn. in 2009, which is a declined by 10.7% over the previous year due to decline in exports from Sri Lanka to Italy as well as imports from Italy to Sri Lanka, as could be seen from the following table.
Sri Lanka Exports, Imports, Total Trade & Balance of Trade with Italy
Value in US$ Mn. (2005-2009)
Source: Sri Lanka Customs
The trade balance between the two countries has been continuously in favour of Sri Lanka, which was mainly due to the increased exports of apparel and clothing accessories to Italy.
Sri Lanka’s Exports to Italy
There has been a significant increase in Sri Lanka’s exports to Italy during recent past except for 2009, when total exports were decreased by 1.75% in 2009. Clothing and accessories have been the major export items to Italy during the past several years and the contribution in 2009 was about 79% of the total exports. Other leading export items were fish & crustaceans (5.8%), molluscs & other aquatic invertebrates, smoking tobacco, solid tires(2%) , tea (1.85%) footwear (1.45%).
According to 2008 statistics, Sri Lanka was the main supplier of tea to Italy. Sri Lanka’s main competitors were Kenya, India, Vietnam and China. During the period 2004-2008, growth in Sri Lankan tea exports to Italy in terms of value and quantity were 16% and 6% respectively. In addition, during this period, Sri Lanka’s market share for tea was 13% in the Italian Market.
Articles of Apparel & Clothing Accessories not knit or crochet (HS; 62)
According to 2008 statistics, Sri Lanka was ranking in the 21st place among the suppliers of said product to Italy. Sri Lanka’s main competitors in Italian market are Tunisia, France, Turkey, India, Bangladesh, Belgium, Germany, Hong Kong and others. During the period of 2004-2008, growth in Sri Lankan exports of the above product to Italy was 41% in terms of value.
Sri Lanka’s major export items to Italy 2005-2009 (Value in US$. Mn)
Source: Department Of Customs
Articles of Apparel & Clothing Accessories knit or crochet (HS; 61)
Though Sri Lanka was ranking in the 23rd place among the suppliers of said product to Italy, the exports has shown an upward trend in both quantity and value. While in 2008, France being the first largest exporter, Sri Lanka’s main competitors in Italian market includes India, Bangladesh, Belgium, Germany, Hong Kong, and others.
Sri Lanka’s Imports from Italy
Sri Lanka’s major imports from Italy have been knitted or crocheted fabrics, woven & tufted textile fabric, tobacco, man- made staple fibres, man made filaments, cotton, silk, natural or cultured pearls, stones and jewellery, etc. The total value of Sri Lanka’s imports from Italy in 2009 accounted for US $ 167.208 Mn, an increase of 28% over the previous year. Knitted or crocheted fabrics accounted for 40% total import value in year 2009.
Sri Lanka’s major imports items from Italy 2005-2009 (Value in US$.Mn)