Sri Lanka-korea bilateral trade fallen to low levels: official
Trade volume between Sri Lanka and Korea, which has been on the higher side in the past, currently stands at a low level of US $ 400 million per annum, a top official of the Korea Eximbank’ s Colombo Representative Office said.
Chief Representative Officer of Korean Eximbank’s Colombo Office, Sungsoo Jung said the value of Korean exports to Sri Lanka in 2017 was US $ 320 million while Sri Lankan exports to Korea stood at US $ 80 million.
“Korea mainly imports garments and tea from Sri Lanka, whereas Sri Lanka imports mainly Hyundai and KIA vehicles,” he told a group of reporters on Friday.
He said Korea continues to provide loans by way of Official Development Assistance (ODA) for the Sri Lankan government to boost its economy mainly on the economic infrastructures, roads, tunnels and vocational training centres.
“With regard to our priority sectors identified by the Country Partnership Strategy (CPS) with Sri Lanka, we focus on supporting education, transportation, water management and sanitation as well as rural development.
“These sectors have been prioritized in line with Sri Lanka’s national development plans, Korea’s capacities and expected financial resources,” he added.
Having approved its first Economic Development Cooperation Fund (EDCF) ODA project for Sri Lanka in 1990 for the rehabilitation of the Colombo-galle Road, the Korean Eximbank has approved US $ 785.07 million for 29 development projects in Sri Lanka as of now.
“From this total EDCF commitment of US $ 785.07 million, US $ 385 million has been allocated to transportation sector. The second most prominent sector in terms of fund allocation is water and sanitation which is UD$ 205 million,” Jung said.
In terms of loan amounts committed from EDCF, Sri Lanka is ranked at fifth place among all 54 eligible countries.
In addition to EDCF projects, Korea Eximbank as an export credit agency which provides financing for international trade and overseas investment, to promote bilateral economic cooperation.
Since 1978, Korea Eximbank has provided US $ 386 million both for trade between Sri Lanka and Korea and for investments by Korean companies in Sri Lanka by way of foreign direct investment.