Trade Relations between Sri Lanka and Russia:

• Trade between Sri Lanka and Russia has been growing significantly since the disintegration of the former Soviet Union in 1991.
• Though the balance of trade has been continuously favorable for Sri Lanka since 2007 to 2014, the gap has been reduced gradually with the increase of imports. Further, with the decrease of the tea exports from Sri Lanka to Russia in 2015 onwards, the trade balance was in fluctuating trend.

Table 1:  Sri Lanka’s Exports, Imports, Balance of Trade and Total Trade with Russia from 2007-2023 (US $ Mn.)

                                                        Source: Sri Lanka Customs and Sri Lanka Export Development Board

Total trade turnover of the bilateral trade between our two countries in 2019 was 373.56 US $ Mn. which was a 4% decline when compared to year 2018.

From January to August in 2020 it showed a 151.58 million USD exports from Sri Lanka to Russia and 192.88 million USD imports from Russia to Sri Lanka. Despite the COVID situation our two countries have manage to have a much stable trade pattern.

Sri Lanka – Russia Inter Governmental Commission on Trade, Economic, Science and Technical Cooperation

• While recognizing the importance of further strengthening trade relations between Sri Lanka and the Russian Federation, under the initiative of the Russian Federation, a text of the Trade Agreement was finalized in 2001 by both countries. However, the signing of the same has been pending as the Russian Ministry of Trade has suspended entering into new bilateral trade agreements due to their accession to the World Trade Organization during that period. 
• The Agreement on Establishment of Inter – Governmental Commission on Trade and Economic and Science and Technology Cooperation has been signed by the Russian side on 23rd April 2015 and the Sri Lankan side will sign the same, once the dockets receive via diplomatic channels. 
• 1st meeting of the Inter – Governmental Commission on Trade, Economic, Science and Technical Cooperation was held on 10th – 12th February 2016 in Moscow and 2nd meeting of the Inter-governmental Commission was held on 24th – 26th October 2017.

• The Agreement between the Democratic Socialist Republic of Sri Lanka and the Russian Federation for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income which was signed on 2nd March 1999.
• Air Services Agreement between the Democratic Socialist Republic of Sri Lanka and the Russian Federation which was signed on 26th March 2012.
• The Agreement on Visa Exemption for Crew Members of Designated Airlines between the Democratic Socialist Republic of Sri Lanka and the Russian Federation which was entered in to force on 4th December 2012.
• Agreement between the Democratic Socialist Republic of Sri Lanka and the Russian Federation on the establishment of the Inter-Governmental Commission on Trade, Economic, Science and Technical Cooperation which was signed through diplomatic channel in 2015.
• Agreement between the Democratic Socialist Republic of Sri Lanka and the Russian Federation on Cooperation in the Field of Fisheries which was signed on 24th March 2017.
• Memorandum of Understanding on Cooperation in the Field of Tourism between the Ministry of Tourism Development and Christian Religious Affairs of the Democratic Socialist Republic of Sri Lanka and the Ministry of Culture (Ministry of Economic Development – currently functions has been changed to this Ministry) of the Russian Federation which was signed on 24th March 2017.    

• The Customs Union of Belarus, Kazakhstan, and Russia came into existence on January 1, 2010 between the states of Belarus, Kazakhstan, and Russia. The Customs Union was launched as a first step towards forming a broader European Union-type economic alliance of former Soviet states. 
• The member states were planning to continue with economic integration and were set to remove all customs borders between each other from July 2011. 
• On 19 November 2011, the member states put together a joint commission on fostering closer economic ties, planning to create a Eurasian Union by 2015.
• Since January 1, 2012; the three states are a single economic space called Common Economic Space to promote further economic integration. The Eurasian Economic Commission is the regulatory agency for the Customs Union and the Eurasian Economic Community.
• Access of products to the single territory of the Customs union is granted after products have proved to be compliant with the requirements of Customs Union Technical Regulations which are applicable to the product. 
• As of December 2012, 31 Customs Union Technical Regulations have been developed covering different types of products, some of which have already come into force, while others will come into force in the period 2012 – 2015. Some Technical Regulations are being still developed.
• On 29 May 2014, Russia, Belarus and Kazakhstan signed the Treaty on the Eurasian Economic Union (EAEU), according to which, starting from 1 January 2015, the Customs Union transformed into the EAEU. The CU and CU regulations became an integral part of EAEU.
• From 1st January 2015, the EAEU was composed of the territories of Russia, Belarus, Kazakhstan and Armenia.
• Kyrgyzstan joined the EAEU on 12th August 2015.  
• Members of the Eurasian Economic Union offer Generalized System of Preferences (GSP) for developing countries and LDCs and under this scheme Sri Lanka can enjoy 25% of tariff reduction from the current customs duty rate.