Summary of Sri Lankan Industries from 2004 to 2013. Submitted for Business Organizations Module (1st semester) in Transport and Logistics Management Degree at Faculty of Engineering, University of Moratuwa.

1. INDUSTRIES IN SRI LANKA
10 YEARS REVIEW
(2004 – 2013)
Business Organizations (TL1102)
Semester 01
Assignment 01
141456X
H.N. Rahubaddha
University Of Moratuwa

2. 1
Introduction
Economy of Sri Lanka
Since its independence in 1948, Sri Lankan economy has been through some major highs and
lows. The Sri Lankan economy has seen robust annual growth at 6.4 percent over the course
of 2003 to 2013, well above its regional peers. Colombo is the major industrial centre of the
country. Due to recession in 2009, the country’s industrial production growth rate dropped to
-0.9%. Following the end of the civil conflict in May 2009, growth rose initially to 8 percent,
largely reflecting a “peace dividend”, and underpinned by strong private consumption and
investment. While growth was mostly private sector driven, public investment contributed
through large infrastructure investment, including post war reconstruction efforts in the North
and Eastern provinces. Growth was around 7 percent in 2013, driven by a rebound in the
service sector which accounts for approximately 60 percent of GDP.
In addition to these economic sectors, overseas employment contributes highly in foreign
exchange, 90% of expatriate Sri Lankans reside in the Middle East.
Sri Lanka’s GDP percentage by sectors (2004- 2013)
Table 1
source- Central Bank of Sri Lanka
 The service sector is the largest of the Sri Lanka economy, employing 45 percent of
the workforce and contributing roughly 60 percent of GDP. Tourism, banking, finance,
and retail trade are the major components of the service sector.
 Manufacturing industries account for approximately 30 percent of the gross domestic
product and employ about 17 percent of the workforce. Chief manufactures include
textiles, ceramics, petroleum products, vegetable oils, fertilizers, and cement.
 Agriculture accounts for approximately 12 percent of the gross domestic
product (GDP) and employs 38 percent of the workforce. Agricultural output is
divided between cash crops from plantation agriculture and food crops from
subsistence agriculture. Cash crops—namely tea, rubber, and coconuts—are largely
grown on plantations. Rice is the principal food crop and the main livelihood for over
70 percent of Sri Lanka's rural population.
Sector 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Agriculture 13.0 12.5 12.3 12.9 12.1 12.0 11.9 11.2 11.1 10.8
Industry 27.7 28.1 28.2 28.5 28.4 28.6 82.7 29.3 30.4 31.1
Services 59.3 59.4 59.5 59.6 59.5 59.3 59.3 59.5 58.5 58.1

3. 2
Main Industries in Sri Lanka
1. Food, Beverages and Tobacco
2. Textile, Wearing Apparel and Leather Products
3. Wood and Wood Products (including Furniture)
4. Paper and paper products, Publishing and Printing
5. Chemical, Petroleum, Coal, Rubber and Plastic Products
6. Non-Metallic Mineral Products (except Petroleum and Coal)
7. Basic Metal Products
8. Fabricated Metal Products, Machinery and Transport Equipment
9. Manufactured Products (not elsewhere specified)
Industrial Production By Industry 2004-2013
(at 2002 constant prices)
Table 2
Rs.Millions
Source- Department of Census and Statistics
Industry 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Food, Beverages
and Tobacco
138,148 147,353 155,842 166,101 174,794 185,142 197,731 211,848 222,722 239,519
Textile, Wearing
Apparel and
Leather
71,529 75,843 78,870 84,603 87,215 87,762 92,293 102,263 107,242 116,828
Wood and Wood
Products
910 985 1,026 1,061 1,085 1,125 1,193 1,246 1,286 1,349
Paper and paper
products
1,210 1,301 1,385 1,503
1,565
1,635 1,742 1,835 2,051 2,308
Chemical,
Petroleum, Coal,
Rubber and Plastic
Products
44,462 47,899 51,714 55,140 58,650 59,706 66,990 73,203 77,455 83,306
Non-Metallic
Mineral Products
11,855 12,341 13,687 14,547 14,547 14,794 16,328 17,670 18,826 19,873
Basic Metal
Products
805 885 906 930 958 965 1,028 1,090 1,105 1,140
Fabricated Metal
Products,
Machinery
&Transport
Equipment
26,089 27,214 28,378 30,011 31,702 32,794 35,482 37,733
39,663
43,135
Manufactured
Products
1,536 1,643 1,812 1,823 1,907 2,004 2,138 2,290 2,371 2,474

4. 3
Provincial Gross Domestic Product by Industrial Origin at
Current Prices 2004 – 2012
Table 3
Source- Department of Census and Statistics
Provincial Gross Domestic Product Percentage
Table 4
Source- Department of Census and Statistics
Province
Year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Western 925,075 1,065,154 1,472,065 1,663,759 2,003,055 2,216,346 2,512,908 2,894,428 3,291,037
n.a
Central 165,509 177,539 187,456 343,804 430,579 473,416 562,744 644,332 743,889 n.a
Southern 160,199 187,456 292,500 377,469 464,723 509,053 598,976 718,768 872,399 n.a
Northern 52,998 63,063 81,978 104,224 139,001 155,828 189,740 242,512 305,287 n.a
Eastern 87,368 99,239 143,523 196,474 246,436 279,363 333,969 379,184 473,700 n.a
North Western 152,925 186,487 267,103 353,670 438,606 466,041 534,831 655,182 729,509 n.a
North Central 65,527 90,727 117,847 142,608 206,749 221,294 266,954 306,975 354,232 n.a
Uva 76,686 95,063 125,410 176,997 200,102 219,293 253,177 297,335 343,131 n.a
Sabaragamuwa 114,471 133,278 178,425 230,685 281,431 294,659 350,806 405,596 465,370 n.a
Total 1,800,751 2,098,004 2,938,680 3,578,688 4,410,682 4,835,293 5,604,104 6,543,313 7,578,554 8,674,642

5. 4
It’s clearly evident that the Western Province, made the highest contribution to GDP during
the period of 2003 – 2012. However its share of GDP reduced to 43.4 % from 49.7 % in
2012. As in 2012, the Southern province provided the second highest contribution which was
11.5 %, an increase compared to 9.9 % in 2003. The Central Province provided the third
highest contribution maintaining its relative position compared to 2003 and managing to
increase its GDP contribution to 9.8 % in 2012. The contribution by the Northern province
has taken a plunge since 2009, after the civil war which the province suffered for 30 years.
Sri Lanka Industrial Production 2004-2013
Industrial Production in Sri Lanka averaged 5.89 Percent from 2004 until 2013,
reaching an all time high of 35.20 Percent in July of 2010 and a record low of -7.95
Percent in September of 2012.
Chart 1- summary of SriLanka Industrial Production
Actual Previous Highest Lowest Dates Unit Frequency
1.48 1.23 35.20 -7.95 2004-2014 percent Monthly

6. 5
Foreign Trade
Sri Lanka was a contracting party to the General Agreement on Tariffs and Trade (GATT)
and also became the founding member of the World Trade Organization (WTO). For
decades, the country assumed a proactive role as a driving force to trigger trade liberalization
in the region. Sri Lanka is also a member of South Asian Free Trade Area (SAFTA).
Export
Major Export products during last 10 years
1. Textile and Garments
2. Natural Rubber Products
3. Petroleum and Chemical Products
4. Gems, Diamonds and Jewellery
5. Machinery, Mechanical and Other Industrial Products
6. Food, Beverage and Tobacco(includes tea, coconut)
table 5- value of Industrial Exports ( 2004 – 2013)
source – board of investment, Sri Lanka/ Sri Lanka Customs

7. 6
Table 6 – selected imports by metric tons
Sri Lanka is the largest exporter of black tea in the world and the third largest producer of
natural rubber. A variety of gemstones, for which Sri Lanka is world famous, are also
exported. Significant quantities of high-grade graphite, for which Sri Lanka is a world leader,
are also exported.
table 7 – exports by principal countries

8. 7
Chart2- export destinations 2013
Source – Annual Report - Ministry of Finance and Planning - Sri Lanka
Sri Lanka exports are mostly textiles and garments (40% of total exports) and tea (17%). Others
include: spices, gems, coconut products, rubber and fish. Main export partners are United States,
United Kingdom, Germany, Belgium and Italy.
TRENDS IN EXPORTS 2004- 2013
Chart 3 – Exports by USD Million (2004- 2013)

9. 8
IMPORTS
Most Imported Items during last 10 years
1. Consumer Goods
a. Rice
b. Flour
c. Sugar
d. Milk and Milk products
2. Intermediate Goods
a. Fertilizer
b. Fuel
c. Textile and Textile Articles
d. Wheat and Maze
3. Investment Goods
a. Building Materials
b. Transport equipment
c. Machinery and Equipment
4. Other Consumer Goods
a. Motor Cars and Cycles
b. Tyres and Tubes
c. Medical and Pharmaceutical Products
Table 7- Selected Imports (2009 -2013)

10. 9
SELECTED IMPORTS (2004 -2013)
Table 8- Selected Imports By Weight
Sri Lanka’s Main Import Sources
1. India
2. People’s republic of China
3. Iran/ Saudi Arabia
4. Japan
5. United States of America
6. Canada
7. United Kingdom
8. Singapore
9. Australia
10. Russia

11. 10
TRENDS IN EXPORTS 2004- 2013
Chart 4- Sri Lanka Imports by USD million
Sri Lanka Balance of Trade 2004-2013
From 2004 to 2013 Sri Lanka had a negative balance of trade (trade loss) . The amount of
import always have being greater than the exports.
Actual Previous Highest Lowest Dates Unit Frequency
1645.10 1750.20 1986.40 498.00 2004 – 2013 USD Million Monthly