Sri Lanka is a significant market for Indian agricultural exports, with a diverse range of products meeting the island nation's food and industrial needs.
The trade relationship between India and Sri Lanka has been strengthening, with exports increasing by 3.6% in 2025 compared to 2024. This growth is driven by the India-Sri Lanka Free Trade Agreement (ISFTA), which provides duty-free access to over 4,000 product lines, and the proximity of the two countries facilitating efficient trade. The near-term outlook remains positive, with continued demand for essential commodities and agricultural products.
China competes with India in supplying machinery and mechanical appliances to Sri Lanka, often offering competitive pricing and advanced technology.
Thailand exports agricultural products like rice and sugar to Sri Lanka, sometimes at lower prices due to favorable trade agreements.
| HS code | Product | Duty | Notes |
|---|---|---|---|
| 8703 | Motor vehicles | 30% | Motor vehicles are subject to a 30% customs duty in Sri Lanka, significantly impacting the landed cost of these imports. |
| 8708 | Parts and accessories of motor vehicles | 15% | Parts and accessories for motor vehicles attract a 15% customs duty, affecting the overall cost of vehicle maintenance and assembly. |
| 8702 | Motor vehicles for the transport of goods | 30% | Goods transport vehicles are also taxed at a 30% customs duty, influencing logistics and transportation costs. |
Certain agricultural products require an Import Control License issued by the Controller General of Imports and Exports Control prior to shipment.
A certificate from the exporting country's plant protection organization, ensuring the product is free from pests and diseases.
Indicates the country where the goods were manufactured, necessary for claiming preferential tariff rates under trade agreements.
The proximity of India and Sri Lanka allows for efficient sea freight, with the Tuticorin-Colombo ferry facilitating 12-hour deliveries. Freight costs vary based on cargo volume and shipping terms.
| Product | India mandi rate | Sri Lanka landed price | Margin |
|---|---|---|---|
| Rice | $450M | Varies | Competitive |
| Cotton | $293.27M | Varies | Competitive |
The Trade Union matches you with verified buyers and handles the documentation.