As the Sri Lankan economy recovered, imports from China have also recovered steadily in the first two months of this year, surpassing India, according to SRILANKA-CHINA ECONOMIC BRIEF ISSUE 1 published by Arutha.
China accounted for 25% of Sri Lanka’s imports in January while India accounted for 24% of the country’s imports in the month. In February, China accounted for 30% of the Island nation’s imports, while India’s import share fell to 19%.
“Such imports are largely driven by yarn and fabric for apparel exports and other household consumption/electrical items and coal,” it stated.
In the past, India was Sri Lanka’s top import source accounting for approximately 20% of total imports. In 2015, Chinese imports for the first time accounted for 20% of total imports, and in 2016 imports from
China marginally surpassed the imports from India. While India topped the imports in the following years, China again became Sri Lanka’s top import source in 2019 and 2020.
As Sri Lanka started to face the economic crisis and sovereign default in 2022, Chinese imports reduced significantly. At the height of the economic crisis in 2022, Indian credit lines including ones to import fuel – supported the Sri Lankan economy. This made India Sri Lanka’s top source of imports in 2022 and 2023.
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