Seoul, 27 July 2022 (TDI): The Ambassador-designate of Sri Lanka, Savitri I. Panabokke met the representatives of Sri Lankan banks based in South Korea.
The delegations met to discuss means of promoting legal remittances to Sri Lanka. Moreover, in the meeting, the officials of the Sri Lankan Embassy in Seoul were also present.
The Ambassador-designate and officials of the Sri Lanka Embassy in Seoul met with representatives of Sri Lankan banks based in South Korea to discuss means of promoting legal remittances to Sri Lanka. pic.twitter.com/FgXUALcBty
— SL in South Korea (@SLinSouthKorea) July 26, 2022
Economic Ties between Sri Lanka and South Korea
Economic relations between Sri Lanka and the Republic of Korea (ROK) are of utmost importance. Sri Lanka is a lower middle-income country with a GDP per capita of USD 3,852 (2019). The population of the country is 21,425,105.
There is a steady increase in bilateral trade between Sri Lanka and the Republic of Korea. The trade currently stands at approximately USD 400 million.
Sri Lanka is a producer of high-quality ethical apparel for top global brands, the world’s third-largest exporter, and the fourth-largest producer of tea.
Furthermore, Sri Lanka is the world’s largest exporter of high-quality industrial solid tires and the world’s largest exporter of true cinnamon (Ceylon cinnamon).
The island country has the world’s greatest concentration of gemstones and is internationally renowned for its blue sapphires.
There also exists much potential to export seafood and fisheries products, aquarium fish, fruit and vegetable, and floriculture products to the Republic of Korea.
The Republic of Korea is an important source of investment including Foreign Direct Investment (FDI) to Sri Lanka.
Korean investment includes over 75 companies based in Sri Lanka. Consequently, the companies have generated more than 18,000 job opportunities in the country.
Moreover, Sri Lanka is a top tourist destination, and tourism is also a fast-growing and lucrative sector to invest in.
Developmental Cooperation between Sri Lanka and Sout Korea
Development Cooperation is an important aspect of the bilateral relationship of both states. Korea International Cooperation Agency (KOICA) and the Korea Exim Bank Economic Development Cooperation Fund (EDCF) offer developmental assistance.
Its importance is demonstrated by the fact that Sri Lanka stands as the third highest recipient of Korean Official Development Assistance (ODA) in terms of cumulative disbursements (USD 481 million).
It is placed at number five in terms of commitments (USD 842 million). The total cumulative assistance provided by the KOICA for Sri Lanka from 1991 to 2017 stands at USD 136 million.