A high-level Indian delegation led by Shri S.R. Rao, Commerce Secretary, Government of India, held talks in Colombo on trade and investment with officials from the Ministry of Finance and Planning and the Ministry of Economic Development. Treasury Secretary Dr. P.B. Jayasundera led Sri Lanka’s team at the bilateral meet.
"The two sides had very cordial discussions on attracting Indian investment into various sectors particularly automobile parts, pharmaceuticals, sugar and tourism. The issue of obtaining substantial market access in India for Sri Lankan apparels, tea and rubber products were also discussed," the Ministry of Finance and Planning said.
According to the Industries and Commerce Ministry, India, which ranked as the 16th largest export destination of Sri Lanka in 2000, has emerged as the fourth largest buyer of Lankan exports in 2011 absorbing 5.1% of Sri Lanka's total exports to the world, after USA, UK and Italy, spurred by the implementation of India-Sri Lanka Free Trade Agreement (ISFTA) in 2000.
According to the Department of Commerce of Sri Lanka, total bilateral trade between the two countries in 2012 was US$ 4.08 billion.
In 2012 Sri Lanka's exports to India has increased to US$ 566.37 million from US$ 521.61 million in 2011 while Indian exports to Sri Lanka has decreased to US$ 3.51 billion in 2012 from US$ 4.35 billion in 2011, mostly due to the reduction in imports of vehicles from India.