Balance of trade in favour of Lanka:

Exports to Mexico rise

Hiran H. SENEWIRATNE

Sri Lanka has the potential to penetrate into the Mexican market. The balance of trade is in favour of Sri Lanka, Ceylon Chamber of Commerce figures show.

Lanka’s exports to Mexico is growing at a rapid pace. The 2005 and 2007 export figures were Rs. 4643 million and Rs. 4871 million.

Sri Lankan imports have increased from Rs. 4643 million to Rs. 4871 million.

Mexico’s Consul to Sri Lanka A Gunasingham said Mexico has liberalised their economy and Sri Lanka has a lot of potential to improve trade ties between the two countries.

He said there is a ready market for spices especially cinnamon in Mexico with potential for increase.

Sri Lanka is also very popular in Mexico for garments also, he said.

Gunasingham said garments and spices in particular have a great potential for Sri Lanka, which has not yet developed. Mexico is one of the partners of the National Free Trade Agreement (NAFTA) one of the growing markets in the world.

Mexico’s exports /imports are routed through the European Union which could facilitate to improve trade ties between both countries.

Sri Lanka is focused on the potential of developing the prospects for Mexican private investment in Sri Lanka as well as increasing the Sri Lanka’s foreign direct investment in Mexico.

The Global Stretchline Group, a joint venture between Stretchline (UK) Ltd, Brandot International Ltd (USA), MAS Holdings (Pvt) Ltd Sri Lanka and Grupo DEALS S.A. De C.V. (Mexico) have invested in Mexico.

The potential for increasing trade between Sri Lanka and Mexico, particularly with regard to exporting high quality Sri Lankan tea to Mexico is also high on the agenda.

Lanka currently is the supplier of cinnamon worth US$ 39 million a year.

Another key agenda item discussed was the establishment of a Sri Lanka representation in Mexico.