COLOMBO : Pakistan’s exports to Sri Lanka grew from US$ 97 million in 2004 to US$ 355 million in 2018 while, Sri Lanka’s exports to Pakistan grew from USD 47 million in 2004 to US$ 105 million in 2018, almost double over the same period. However, the two way trade is only US$ 460 million when the potential is more than US$ 2 billion.
Since both President Gotabaya Rajapaksa and Prime Minister Imran Khan have pledged to promote FDIs, various areas of investment will be discussed. Due to a lack of awareness, exporters do not make full use of the market potential and benefits under the free trade agreement. Additionally, Sri Lankan businessmen tend to stick to the existing markets. Both countries need to diversify their products through research, innovation, and value addition, adjusting according to the demands of each other’s market.
High Commissioner Khattak has also highlighted in his recent interview that Pakistani companies have invested in agriculture, Information Technology, textiles and construction /real estate development in Sri Lanka. The Sri Lankan Construction and Real Estate industry is rapidly growing and the country has an import requirement of 600 million USD worth of cement annually from various countries. Pakistan already exports cement to Sri Lanka and has the capacity to increase its exports due to competitive pricing and good quality. This sector has a larger potential due to increased consumer spending on construction and real estate. Similar case is with the sugar as Sri Lanka imports more than 90% of its annual sugar requirement. Sugar is one of the potential sectors where Pakistani investors can focus on in 2021. Because of strained relations between India and Pakistan betel leaves from India do not come to Pakistan. That place has been taken by Sri Lankan betel leaves.