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India and Sri Lanka share a dynamic trade relationship, with a significant volume of goods moving between the two nations. As per reports on the United Nations COMTRADE database, Sri Lanka’s imports from India notably amounted to US$4.63 billion in 2022.
This robust trade is driven by the import of various items from India, including essential commodities like mineral fuels and oils, cereals, cotton, and knitted or crocheted fabric. These items are among the top contributors to this thriving economic exchange.
As businesses in India look to expand their reach into the Sri Lankan market, understanding the nuances of shipping from India to Sri Lanka becomes crucial.
Whether you’re wondering how to import clothes, food, or textiles, navigate through this comprehensive guide to gain insights on the essentials of exporting from India to Sri Lanka for a smooth and successful import process.
Explore the key steps and regulations for seamless shipping from India to Sri Lanka.
Importing products to Sri Lanka may incur various charges, including a Value-Added Tax (VAT) that ranges from 8% to 15% on most items. Import tariffs are also applied, divided into three categories: 0%, 15%, and 30%, depending on the type of goods. Typically, raw materials are taxed less, while finished goods face higher tariffs.
Notably, Sri Lanka does not offer de minimis exemptions, meaning all imports, regardless of value, are subject to these taxes and tariffs. However, the India-Sri Lanka Free Trade Agreement (ISFTA), effective since 2000, has significantly altered this landscape. This agreement permits a wide array of manufactured and agricultural goods from India to enter Sri Lanka, either duty-free or at reduced tariffs, greatly facilitating trade between the two nations.
As a result of ISFTA, imports from India to Sri Lanka have seen a notable increase, reflecting a strengthened economic bond. This development is evident in the 2022 data from TrendEconomy, which identifies India as among Sri Lanka's top trading partners. Notably, India stands as Sri Lanka's largest import partner, accounting for 26% of total imports.
This commitment to enhancing bilateral trade and cooperation underscores the dynamic and forward-looking nature of the India-Sri Lanka economic partnership.
The import procedure in Sri Lanka is governed by a strictly enforced set of rules. One of these rules pertains to the careful monitoring and control of Sri Lanka’s import products. Understanding the regulations around restricted and prohibited items is crucial to avoid significant consequences.
Non-compliance can lead to severe penalties, including substantial fines, confiscation of goods, and, in some cases, legal action that could result in business operation suspensions or even criminal charges.
Here’s a list of items businesses in India should be particularly mindful of when shipping to Sri Lanka:
Similarly, businesses in India must also be mindful of the items restricted or prohibited from leaving India. This ensures compliance with both Indian and Sri Lankan laws, safeguarding your business against legal complications.
For the most accurate and up-to-date information on the list of products from India that are allowed for import into Sri Lanka, it's best to contact the customs authorities directly or consult your logistics provider.
For traditional and Indian online shopping stores that ship to Sri Lanka, prioritising accurate and complete documentation is crucial. This meticulous preparation is key to avoiding customs delays and ensuring adherence to import regulations.
The key documents required for smooth customs clearance in Sri Lanka include: