Volume 18, No. 6, 2021

Indo-Sri Lanka Trade Intensities And Complementarities

James L.T. Thanga & Vanlalkhumtiri Chhangte


Sri Lanka is India's most important trading partner among the SAARC countries, with trade relations significantly picking up after the liberalisation of both economies and the signing of the Indo-Sri Lanka Free Trade Agreement (ISFTA) in December 1998, which came into force in March 2000. Based on trade data between India and Sri Lanka ranging from 1990- 2017, the paper analyses trade complementarity between India and Sri Lanka, which shows that India's exports are highly complementarity to Sri Lanka's imports while low trade complementarity is found for Sri Lanka's exports with India's imports. The trade intensity Index between 1980-2018 reveals trade intensity to be low between the two neighbouring countries.

Pages: 8572-8582

Keywords: Trade Complementarity, Trade Intensity, Revealed Comparative Advantage, Export, Imports.

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