India-Sri Lanka trade gap: exports hit USD 5.52 billion vs imports of USD 1.66 billion

Who it concerns: Ministry of External Affairs; Indian and Sri Lankan citizens, businesses, and refugees.

What the committee found

• Committee recommended that the India-Sri Lanka Joint Commission and Joint Working Group on Fisheries meet more regularly.
• Committee recommended leveraging regional platforms like the Indian Ocean Rim Association for cooperation in maritime security, disaster management, and cybercrime.
• Committee recommended addressing rules of origin and non-tariff barriers to increase Sri Lankan exports to India.
• Committee recommended finalising the Economic and Technology Cooperation Agreement to extend the free trade agreement to services.
• Committee recommended encouraging Indian investment in public-private partnerships for refineries, minerals, and airports in Sri Lanka.
• Committee recommended resolving issues faced by Indian private companies in Sri Lanka and providing them diplomatic support.
• Committee recommended jointly promoting the Buddhist Circuit in India and the Ramayana Trail in Sri Lanka.
• Committee recommended expanding flight connections to Tier-II Indian cities and scaling up UPI merchant adoption.
• Committee urged the Ministry to build consensus in Sri Lanka for the proposed 30 km land corridor/bridge linking India to Sri Lanka’s ports.
• Committee recommended developing a viable business model for the stalled Trincomalee oil tank farms.
• Committee called for time-bound completion of India’s grant projects, including the Indian Housing Project (10,000 houses).
• Committee recommended that India play a bigger role in supplying military equipment to Sri Lanka.
• Committee recommended negotiating with Sri Lanka to minimize sentences for arrested Indian fishermen and replacing trawlers with deep-sea vessels.
• Committee recommended establishing a coordination mechanism to verify refugee data and facilitate repatriation of approximately 89,000 Sri Lankan refugees in India.
• Committee recommended providing livelihood support, education, and employment opportunities to refugees.
• Committee recommended extending Overseas Citizenship cards to Indian Origin Tamils.
• Committee recommended addressing implementation challenges of the Sri Lanka Unique Digital Identity Project regarding sovereignty, data privacy, and security in a time-bound manner.

Also in the document

• Bilateral trade is unbalanced in India’s favour, with India’s exports at USD 5.52 billion compared to Sri Lanka’s USD 1.66 billion.
• India is one of the largest sources of FDI in Sri Lanka, with cumulative investment of USD 2.9 billion as of December 2025.
• Indian tourists account for 22.5% of total arrivals in Sri Lanka in 2025.
• Approximately 89,000 Sri Lankan refugees, mostly Tamils, were residing in India as of June 2025.
• The Sri Lankan government is yet to take a position on the proposed 30 km bridge linking India to Sri Lanka’s ports.
• The Trincomalee oil tank farms project is described as stalled.