Other Korean firms too are keen on a variety of projects in Sri Lanka, ambassador Jongmoon Choi said.

"Hyundai is looking mainly at shipbuilding and repairs while other Korean firms including LG are looking at electronics," the statement quoted Jongmoon as saying.

"To this end, these companies are planning to send a fact finding trade delegation to Sri Lanka in the due course."

The main sectors of Korean investments in Sri Lanka at present are apparels, textiles, yarn, electrical and electronics, plastic, rubber, chemicals, steel, ceramics, ornamentals, toys, infrastructure and packaging.

In 2010, Sri Lanka exported to South Korea 30.9 million US dollars worth of goods and imported goods worth 201.4 million dollars, resulting in a trade gap for Sri Lanka of 171.3 million dollars.

According to the Department of Commerce, the bilateral trade and economic relations between the two countries have not shown significant progress during the last few years, the statement said.

Coconut fibre was the dominant export item from Sri Lanka, accounting for 20 percent of total export earnings from South Korea in 2010.

Other major export items from Sri Lanka to Korea are rubber products, articles of apparel clothing and accessories, used pneumatic tyres of rubber, furniture, bedding, mattresses and mattress supports, the statement said.

Iron or steel were the imports from South Korea. Other imports were boilers and machinery and parts and man-made staple fibres which increased sharply in 2010.