Italy Sri Lanka Trade Relations

Italy- Sri Lanka Trade relations in brief

Italy and Sri Lanka have been long standing trading partners dating back to several centuries. The various coins and artifacts unearthed by archaeologists in Anuradhapura and Polonnaruwa in Sri Lanka provide clear evidence of such close relations. In the present day context Italy, as the 03rd largest economy in the Euro zone area and as a G7 country, has become a very important market for Sri Lankan export products. In the year 2025 for Sri Lankan exports, Italy has been the 5th largest single buyer with a share of approximately 5%, whereas Italy has been the 16th largest supplier for Sri Lanka with a share of 1.3% in the year 2025.

According to the Sri Lanka Export Development Board, Sri Lanka’s exports to Italy reached USD 679.77 million in 2025, while imports from Italy to Sri Lanka stood at USD 286.83 million during the same year. Sri Lanka’s main exports to the Italian market include apparel, T-shirts, women’s outerwear, rubber tyres and tubes, activewear and sportswear, frozen fish, manufactured tobacco, and industrial and surgical rubber gloves. These figures reflect Italy’s continued importance as a European market for Sri Lankan export products and highlight the potential for further trade expansion.

When it considered the bilateral trade between the two nations, Sri Lanka’s exports to the Italian market for the last two decades has been increasing from USD 198.5 million in 2005 to USD 679.77 million in 2025. Bilateral trade balance regularly has been in favor of Sri Lanka. Along with GSP+ unilateral duty concessions which were granted to Sri Lanka by the European Union countries in the month of May, 2017, including Italian side (For EU- GSP+ Guidelines pl, access to web link http://www.intracen.org/EU-SRI-LANKA/Resources-and-materials ), and the trade promotional works are undertaken by the Embassy of Sri Lanka in Italy, new trade flows are expected to create in the coming years having much optimistic to further increase trade and economic relations between Italy and Sri Lanka.

Existing and Potential Export Products from Sri Lanka to Italy

Clothing items from Sri Lanka to Italy have been the biggest exports, having a share of 79.5% of Sri Lanka’s total exports to Italy in 2025. Other main export products from Sri Lanka to Italy were solid and pneumatic tyres, tobacco products, tea, fish products etc. In terms of Sri Lanka’s clothing exports, Italy has been the 3rd largest buyer in 2025. With regard to rubber products from Sri Lanka, Italy has been one of the largest buyers in the same alongside Belgium, Germany and the US.

There is further potential mainly in the apparel sector, petroleum products, rubber gloves etc. Other than the above products, in general, there is much potential for the products from Sri Lanka, i.e, fish, tea, spices, footwear, gems jewellery, electronic apparatus, boat sails, porcelain products, push bicycles etc, to the Italian market.

Sri Lanka - Italy Business Council

Sri Lanka- Italy Business Council was inaugurated under the aegis of the Ceylon Chamber of Commerce on 09th of October, 1998 with the objective to promote investment, trade and joint venture between Sri Lanka and Italy. The Sri Lanka – Italy Business Council continues to collaborate with the Ceylon Chamber of Commerce in achieving the objective of strengthening bilateral ties and promoting investment and joint venture partnerships. For further information, please visit the website of the Sri Lanka- Italy Business Council: http://www.srilankaitaly.com/committee.php . With a view to increase Italian investments in Sri Lanka and to expand business relations, an Italy– Sri Lanka Business Council was also established in 1997 under the Embassy of Sri Lanka in Rome; however, it is not functioning at present.