Business Initiatives strengthen between Sri Lanka and Indonesia under preferential agreement
By: Staff Writer
October 13, Colombo (LNW): Sri Lanka plans to sign a preferential trade agreement with Indonesia in March 2025 to enhance its export potential. Negotiators from both countries met in Colombo on July 15-16 and aimed to finalize the agreement by December 2024.
Sri Lanka already has free trade agreements with Thailand and Singapore, promoting gradual trade liberalization.
Indonesia ranks as the 37th export destination for Sri Lanka, with the latter exporting goods worth USD 49.01 million to Indonesia in 2023.
Imports from Indonesia to Sri Lanka reached USD 375.51 million in the same period, making Indonesia the 8th largest import origin for Sri Lanka. Exports to Indonesia increased by 0.22% in 2023 compared to 2022, while imports saw a significant rise of 12.19%.
Key Sri Lankan exports to Indonesia in 2023 included knitted fabrics, chemical products, edible preparations, petroleum oils, women’s outerwear, motor vehicle parts, cartons, boxes, and rubber tires.
A Sri Lanka–Indonesia Business Council delegation, consisting of 14 business professionals, visited Indonesia from October 6-11, 2024. This mission involved various sectors like food and beverage, logistics, pharmaceuticals, apparel, IT, and travel industries. The delegation participated in business forums, expos, and visited key trade stakeholders.
At the Indonesia–South and Central Asia (INASCA) Business Forum 2024, organized by Indonesia’s Ministry of Foreign Affairs, the Sri Lankan delegation set up a booth that drew significant attention. They also attended the 39th Trade Expo Indonesia, which showcased the country’s growing economic opportunities.
Productive discussions took place with the Indonesia Employers’ Association (APINDO) and the Indonesian Chamber of Commerce and Industry (KADIN) to bolster trade relations between the two nations. The delegation also toured the MM2100 Industrial Town in Cikarang to gain insights into Indonesia’s industrial advancements.
A business networking session hosted by the Association of Sri Lankans Living in Indonesia (ASLI) in Jakarta further facilitated connections between Sri Lankan entrepreneurs in Indonesia. The entire initiative was supported by the Sri Lankan Embassy in Jakarta, aiming to foster stronger economic ties between Sri Lanka and Indonesia.
