Key economic indicators and trade data relevant to the country’s market are discussed in the US market. The political situation, if relevant, is the main reason why US companies should export this country and affect trade such as terrorism or devaluation of currencies, trade agreements.
Sri Lanka is a middle-income country with 21.4 million inhabitants. In 2017, Sri Lanka’s domestic product (GDP) reached $ 4,065 per GPO compared to GPO per billion dollars. Due to the lack of agriculture due to droughts and floods in some areas, Sri Lanka’s economy grew by 3.1 percent in 2017, an increase of 4.5 percent last year. The International Monetary Fund (IMF) expects GDP growth of 4,000 percent in Sri Lanka in 2018, boosting agriculture, industry and wellness services.
In December 2017, the inflation rate was 7.1%, down 4.4% in June 2018. With signs of a recovery in agricultural production, the IMF estimates the inflation rate in 2018 to be below 5%. It is estimated that in 2017, Sri Lanka estimated 60 percent of its GDP and carried external debt. The government will have to expect high payments in the coming years. Due to the strong US dollar, the rupiah fell by one percent.
The total annual imports amount to about 21 billion US dollars, mainly in India, China, the United Arab Emirates and Singapore. In 2017, Sri Lanka had goods worth $ 336 million. Trade in goods and services between the United States and Sri Lanka in 2017 was $ 3.2 billion.
The United States is Sri Lanka’s largest export market, exporting $ 2.9 billion from Sri Lanka in 2017. These countries. The Government of Sri Lanka expects the Sri Lanka-Singapore Free Trade Agreement to be signed in January 2018 to link Sri Lanka with regional and global values. By July 2018, Sri Lanka has signed a free trade agreement with China under the Economic and Technical Agreement (ETCA) and China.
Sri Lanka is relatively open to foreign investment compared to other countries in South Asia. It offers an open financial system, an average continuous monetary policy, an improved infrastructure and the provision of experienced local businesses.