UAE, Sri Lanka bilateral trade tops half billion dollar mark

Monday, 20 June 2011 00:00 - - {{hitsCtrl.values.hits}}

Bilateral between Sri Lanka and United Arab Emirates in 2010 had surpassed the US dollar half a billion mark and growing, says Consul General in Dubai M.M. Abdul Raheem.

Sri Lanka has been trading with the UAE for a considerable period and it continues to remain one of Sri Lanka’s major trading partners ranking seventh of top export market to Sri Lanka. The total trade between the two countries was at US$ 570 m in 2010, an increase of US$ 65 m compared to the figures registered in 2009. However, the balance of trade has been in favour of the UAE.

Tea, natural rubber, coconut oil, desiccated coconut, copra, cashew nuts, essential oil, fruits and vegetables, processed food, sea food, rubber products and toys are the major export commodities from Sri Lanka to the UAE. However, tea has been the major export commodity contributing 58% to 60% of Sri Lanka’s total exports to the UAE.

Among the items imported from the UAE, crude oil, diesel, gas oil and lubricants are the major import commodities accounting for 24% of total imports. Other items include urea, lentils, iron and steel and machinery and parts.

Raheem also said UAE has been ranked as the third largest investor in Sri Lanka in 2010. The total investment from UAE is valued at US$ 66 m, which is 12% of the total FDI of Sri Lanka in 2010.

Growing Sri Lanka’s tourism market in the UAE has been encouraging and publicity on Sri Lanka’s tourist attractions has to be promoted as the UAE holiday makers are now willing to visit Sri Lanka after the dawn of peace in the country.

With the recovery of UAE economy and the expected GOP growth of 4% this year, there are opportunities for further expanding bilateral trade and economic relations between the two countries.