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§ Export (% of total, customs basis): US 28.2%, UK 11.5%, India 9.0%, Germany 4.1%.

Export Commodities: Textiles & garments, tea, diamonds & jewellery, petroleum.

§ Import (% of total, customs basis): India 18.5%, China 10.5%, Singapore 8.7%, Hong Kong 4.2%.

Import Commodities: Mineral products, textiles, machinery & transport equipment, base metals.

? United Kingdom

Trade and Investment with the UK

UK imports from Sri Lanka have consistently exceeded UK exports to Sri Lanka. Exports have declined during the period 2001 to 2004 from ￡142.4 million to ￡138.8 million and imports have steadily increased from ￡400.8 million to ￡466.9 million during the period 2001 to 2004. The UK's net investment in Sri Lanka has averaged some ￡50 million per annum over the last 20 years. The UK is the largest European investor in Sri Lanka and second overall in terms of projects. Further progress in the peace process would lead to more opportunities for British companies in Sri Lanka.

Cultural Relations with the UK

The British Council has English Teaching Centres in Colombo (one of the fastest growing in the network with well over 3000 students) and Kandy, and is involved in English language projects throughout the island. It also runs busy libraries at the teaching centres, and maintains a lively arts programme.

The Council runs an education information service that offers detailed information on all aspects of the British education system, and administers exams in Colombo and Kandy. In Sri Lanka the Council also works closely with the Ministry of Education on its education reform agenda, particularly at Primary level.

(www.iptu.co.uk)

? USA

The Trade and Investment Framework Agreement (TIFA), signed by the USA and Sri Lanka on 25th July 2002 in Washington DC, provides an ideal platform for the two Governments to maintain a closer dialogue on a number of areas / fields that are of mutual interest to them.

On the Sri Lankan side:

(a) Securing preferential market access for Sri Lanka's exports in the US Market,

(b) Obtaining technical assistance and

(c) Economic cooperation.

Meanwhile, the US government attaches high importance to areas such as:

Government procurement procedures in Sri Lanka,

Trade liberalization measures, including tariff and para-tariffs of Sri Lanka,

Relaxation / rationalization of Sri Lanka's regulations with regard to importation of genetically modified (GM) foods, poultry products etc,

Resolving issues pertaining to US investments in Sri Lanka,

Effective enforcement of Intellectual Property Rights (IPRs) and (f) Sri Lanka's position in the WTO negotiations.

The United States of America (USA) continues rank Sri Lanka's no. 1 export market, accounting for nearly 1/3 of Sri Lanka's exports, whereas the USA accounts for only about 3% Sri Lanka's total imports. The table below indicates the value of bilateral trade over the last few years.

Sri Lanka's Trade with US: 2001 - 2006

Value: in Million US $ Source: The US Bureau of Census

Major exports from Sri Lanka:

Apparel & Textile Products (79%), Rubber & rubber products (7