ශ්රී ලංකා ප්රජාතාන්ත්රික සමාජවාදී ජනරජයේ තානාපති සහ නිත්ය නියෝජිත කාර්යාලය, බැංකොක්, තායිලන්ත රාජධානිය
இலங்கை ஜனநாயக சோசலிச குடியரசின் தூதரகம் மற்றும் நிரந்தர வதிவிடம், பாங்கொக், தாய்லாந்து இராச்சியம்
The Embassy and Permanent Mission of the Democratic Socialist Republic of Sri Lanka, Bangkok, Kingdom of Thailand
Laos Trade Relation
Economic and social Indicators - Laos and Sri Lanka
| Laos | Sri Lanka | |
|---|---|---|
| Official Name | Lao People's Democratic Republic | Democratic Socialist Republic of Sri Lanka |
| Area | 236,800 Sq km | 65,610 Sq. Km |
| Capital | Vientiane (Viangchan) | Sri Jayawardenepura Kotte |
| Population | 7,852,377 (2023 est.) | 23,326,272 (2023 est.) |
| Life Expectancy | 66 years | 75.5 Years (2017) |
| Ethnic Groups | Lao 53.2%, Khmou 11%, Hmong 9.2%, Phouthay 3.4%, Tai 3.1%, Makong 2.5%, Katong 2.2%, Lue 2%, Akha 1.8%, other 11.6% (2015 est.) | Sinhalese 74.9%, Sri Lankan Tamil 11.2%, Sri Lankan Moors 9.2%, Indian Tamil 4.2%, Other 0.5% (2012) |
| Religions | Buddhist 64.7%, Christian 1.7%, none 31.4%, other/not stated 2.1% (2015 est.) | Buddhist 70.2%, Hindu 12.6%, Muslim 9.7%, Roman Catholic 6.1%, Other Christian 1.3% (2012) |
| GDP | USD 18.246 billion (2019) | USD 84.5 billion (2021) |
| GDP - Rate | 0.44% (2020) | 3.7% (2021 Provisional) |
| GDP - Per Capita | USD 1,835.66 (2020) (Source: World Bank) | USD 3,814 (2021) (Source: World Bank) |
| GDP Composition by Sector | Agriculture: 20.9% | Agriculture: 7% (2020 excluding taxes) |
| Industry: 33.2% | Industry: 25.5% (2020 excluding taxes) | |
| Services: 45.9% (2017 est.) | Services: 58.7% (2020 excluding taxes) | |
| Labor Force | 3.582 million (2017 est.) | 8.553 Million (2021) |
| Labor Force - By Occupation | Agriculture: 73.1% | Agriculture: 27.3% (2021) |
| Industry: 6.1% | Industry: 26.0% (2021) | |
| Services: 20.6% (2012 est.) | Services: 46.7% (2021) | |
| Unemployment Rate | 0.7% (2017 est.) | 5.1% (2021) |
| Inflation Rate | 0.8% (2017 est.) | 6% (2021) |
| Agriculture Products | Rice, Roots/Tubers nes, Cassava, Sugar Cane, Vegetables, Bananas, Maize, Watermelons, Coffee, Taro | Rice, Sugarcane, Grains, Pulses, Oilseed, Spices, Vegetables, Fruit, Tea, Rubber, Coconuts; Milk, Eggs, Beef; Fish |
| Industries | Mining (Copper, Tin, Gold, Gypsum); Timber, Electric Power, Agricultural Processing, Rubber, Construction, Garments, Cement, Tourism | Processing of Rubber, Tea, Coconuts, Tobacco and Other Agricultural Commodities; Telecommunications, Insurance, Banking; Tourism, Shipping; Clothing, Textiles; Cement, Petroleum Refining |
| Export | $7.82 billion (2021 est.) | USD 12.249 Billion (2021) |
| Exports Commodities | Electricity, Copper, Rubber, Gold, Flavored Water | Textiles and Apparel, Tea and Spices; Rubber Manufactures; Precious Stones; Coconut Products, Fish |
| Exports Partners | Thailand 36%, China 28%, Vietnam 16% (2019) | US 25.07%, UK 7.63%, India 6.66%, Germany 6.16%, Italy 4.72% (2021) |
| Imports | $6.527 billion (2021 est. | USD 20.052 Billion (2021) |
| Imports Commodities | Refined Petroleum, Cars, Cattle, Iron Structures, Steel Products | Petroleum, Textile Yarn, Fabrics, Made-Up Articles, Machinery and Transportation Equipment, Building Materials, Mineral Products, Foodstuffs |
| Import Partners | Thailand 53%, China 26%, Vietnam 10% (2019) | China 23.71%, India 22.05%, UAE 6.55%, Malaysia 3.84%, Singapore 3.61% (2021) |
Source: The World Fact book/central Bank of Sri Lanka/Sri Lanka Customs
Bilateral Trade Performance
Trade between Sri Lanka and Laos has remained at a relatively low level during recent years, with total trade turnover fluctuating significantly.
Between 2017 and 2022, Sri Lanka's exports to Laos declined considerably from US$0.22 million in 2017 to US$0.01 million in 2022, despite an exceptional increase recorded in 2021. Imports from Laos similarly fluctuated, reaching their highest level of US$1.43 million in 2021 before declining to US$0.56 million in 2022.
Throughout the period, Sri Lanka consistently recorded a trade deficit with Laos, reflecting the relatively higher value of imports compared to exports.
During January–September 2023, imports from Laos increased significantly to US$2.57 million, while Sri Lanka recorded virtually no exports to the Lao market, resulting in a wider bilateral trade deficit.
Sri Lanka's Exports to Laos
Laos ranked as Sri Lanka's 194th export destination in 2022, accounting for only 0.0006% of Sri Lanka's global exports.
Sri Lanka's exports remain highly concentrated in a limited number of products. In 2022:
- Special woven fabrics accounted for approximately 90% of total exports.
- Other exports included plants and parts of plants, tea, and a small quantity of miscellaneous products.
Previous years also recorded exports of:
- Apparel
- Fuel oil
- Ores, slag and ash
- Plastics and plastic articles
- Printed books and newspapers
- Cotton
- Knitted fabrics
- Articles of jewellery
- Iron and steel products
The narrow export base indicates significant scope for diversification.
Sri Lanka's Imports from Laos
Laos was Sri Lanka's 89th import source in 2022, accounting for 0.003% of Sri Lanka's total imports.
Major imports from Laos in 2022 included:
- Fertilisers (61.16% of total imports)
- Paper and paperboard (38.20%)
- Electrical transformers
- Printed books and newspapers
- Apparel
- Toys and recreational products
The sharp increase in imports during 2021 was mainly driven by paper and paperboard products, while fertilisers emerged as the leading import category in 2022.
Preferential Trade Arrangements
Sri Lanka and Laos are both members of the Asia-Pacific Trade Agreement (APTA), formerly known as the Bangkok Agreement. The Agreement was signed on 2 November 2005 and entered into force on 1 September 2006.
Despite both countries participating in APTA, there has been no recorded bilateral trade conducted under APTA preferences, indicating limited utilization of the agreement by the private sectors of both countries.
Potential for Expanding Sri Lankan Exports
Considering Laos' import demand and Sri Lanka's production capabilities, several products possess good export potential, including:
- Solid and cushion tyres, interchangeable tyre treads and tyre flaps
- Animal feed preparations
- Black tea in packs not exceeding 3 kg
- New pneumatic tyres
- Boards and panels for electric control equipment
- Natural rubber
- Portland cement
- Broken rice
Greater business-to-business engagement, participation in trade fairs, and improved market awareness could facilitate increased exports of these products.