Sri Lanka entered into a Bilateral Agreement with Indonesia for Economic and Technical Co-operation in June 1996. The Agreement provides for a Joint Commission to monitor the implementation, and recommend measures for the advancement of its goals. An agreement between the two countries has also been concluded concerning the Promotion and Protection of Investments. In 1993 the Ceylon Chamber of Commerce also entered into an Agreement in Commercial Co-operation with the Indonesian Chamber of Commerce (KADIN).
Sri Lanka Trade with Indonesia
The two way trade between the two country is during the years 2001 to 2010 shows that the balance of trade has been in favor of Indonesia. This is mainly due to import of cement, cotton, palm oil, manmade staple fibres and tobacco. Considering the present status of bilateral trade, both side experienced satisfaction regarding the current status of trade. As of 2011 bilateral trade stood at US$ 412,8 million with the trade balance in favors of Indonesia. Both side agreed to take necessary measures to increase trade to its fullest potential. In this regard, a target was set to research a bilateral trade volume of US$ 1 billion by 2015.
Sri Lanka’s major export items to Indonesia was wheat or meslin flour which accounts 88.33% of total exports. Other major export items are precious stones, tea, re-treated or used pneumatic tires, tulles and other net fabrics.