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 total trade turnover between Sri Lanka and Indonesia, as shown in table 1 below, has recorded its highest value in 2021. This increase was mainly due to the increase in earnings from export of Special woven fabrics, Preparations of meat, of fish or of crustaceans and knitted or crocheted fabrics to Indonesia in 2021.
Sri Lanka’s export to Indonesia has been erratic. However, it is noteworthy that there was no change in the total export values in 2022 compared to 2021. The trade balance has always been in favor of Indonesia. On the import front, Sri Lanka’s import from Indonesia increased in 2022. This is mainly due to increase the import of Fertilizers from Indonesia last year. Indonesia was the 39 th export destination of Sri Lanka in 2022 with a share of 0.38% of Sri Lanka’s total exports. In 1977, Indonesia was Sri Lanka’s 64 th export market with a share of 0.04%.