Sri Lanka – USA Historical Economic Ties;

Economic and commercial relations between the people of Sri Lanka and USA dates back to few centuries. In 1787 the year that America adopted its Constitution, New England sailors first anchored in the harbors of Sri Lanka. In 1850 John Black, a Scottish merchant resident in Galle, Sri Lanka was named the first American Commercial Agent in Ceylon. The American Commercial Agency moved to Colombo in 1870 and became the American Diplomatic establishment in Sri Lanka.

USA is the single largest buyer of Sri Lankan exports since 1979 and remained as the major trading partner till to date accounting for over 25% of Sri Lanka’s total exports.

The total trade turn over between Sri Lanka and USA currently stand above US$ 2 million which is mostly in favor of Sri Lanka. Composition of Sri Lanka’s export to the USA has shown some degree of diversification during the past few years; yet textiles and apparel products continue to be the largest export item to the US market accounting for over 60% of the total export in several years. The other major items of exports to the US market from Sri Lanka include natural rubber and manufactured rubber products, solid tires, gem and jewelary, tea, cinnamon and other spices, coconut fiber and related products, ceramic products etc.

The US exports to Sri Lanka has not shown continues pastern in the past years and the total of remain around US$ 200 million.

Currently there are about 75 US companies with over US$ 200 million investments which operate in Sri Lanka in different fields of activities.

At a time when the US economy is experiencing difficulties due to economic down turn most US companies are being cautious and looking forward to cost reduction. In this respect Sri Lanka can be positive destination where business enterprises could find economically potential sources and gainful contracts in manufacturing.