India and Sri Lanka
Trade, energy, transport and development cooperation connect India and Sri Lanka. The April 2025 agreements added bilateral initiatives and an energy initiative with the Emirates. Assistance and debt restructuring have their own instruments, distinct from business investment.
Analysis reviewed: 2026-10-07 · Indicators updated: 2026-10-07Trade agreement and services negotiations
The Indian overview distinguishes bilateral trade from negotiations on the Economic and Technology Cooperation Agreement, intended to cover goods and services.
Trincomalee and cooperation with the Emirates
The seven memoranda of April 2025 include India–Sri Lanka–Emirates cooperation to develop Trincomalee as an energy hub.
Bilateral indicators
Blank cells: data unavailable.
| Indicator | Value | Period |
|---|---|---|
| Goods trade | 6,021.16 M USD | 2025 · UN Comtrade / IND |
| Goods: India to Sri Lanka | 4,882.84 M USD | 2025 · UN Comtrade / IND |
| Goods: Sri Lanka to India | 1,138.32 M USD | 2025 · UN Comtrade / IND |
| Services trade | ||
| Export share: India to Sri Lanka | 1.1 % | 2025 · UN Comtrade / IND |
| Export share: Sri Lanka to India | ||
| Investment stock: India in Sri Lanka | ||
| Investment stock: Sri Lanka in India |
Definitions and sources
Trade adds both directions. Shares refer to the country’s total goods exports; investment is an accumulated stock, not an annual flow. Every figure retains the currency and period of its source. BEA positions are historical-cost estimates based on the immediate counterpart, not market values or investment by ultimate owner. ‘More than’ indicates a lower bound, not an exact amount. A recorded stock does not establish new activity or authorisation to operate under sanctions.
- Goods trade
- 2025 · UN Comtrade / IND · Goods; full year; IND reporter. Exports normally FOB and imports CIF according to the reporter's coverage. No addition of mirror reports.
- Goods: India to Sri Lanka
- 2025 · UN Comtrade / IND · Goods; full year; IND reporter. Exports normally FOB and imports CIF according to the reporter's coverage. No addition of mirror reports.
- Goods: Sri Lanka to India
- 2025 · UN Comtrade / IND · Goods; full year; IND reporter. Exports normally FOB and imports CIF according to the reporter's coverage. No addition of mirror reports.
- Export share: India to Sri Lanka
- 2025 · UN Comtrade / IND · Goods share: IND exports to the partner / the same reporter's exports to the world, same year.
Country comparison
Period and source beside each figure · est. = estimate by the stated institution.
Some annual indicators refer to different years. Check the period beside each value before comparing them.
| Indicator | India | Sri Lanka |
|---|---|---|
| Nominal GDP | 3.96 trillion USD2025 · WB | 108.83 billion USD2025 · WB |
| GDP per capita | 2,702.48 USD2025 · WB | 5,002.08 USD2025 · WB |
| GDP growth | 7.57 %2025 · WB | 4.95 %2025 · WB |
| Policy interest rate | 5.25 %2026-10-06 · RBI | |
| Inflation · annual average | 2.4 %Annual average · 2025 · WB | -4.76 %Annual average · 2025 · WB |
| Inflation · latest year-on-year figure | 4.82 %provisionalprovisionalYear-on-year · Aug. 2026 · MoSPI | |
| Unemployment | 4.22 %ILO est.2025 · WB | 4.01 %ILO est.2025 · WB |
| Budget balance (% of GDP) | -7.4 %IMF est.2025 · IMF | |
| Gross public debt (% of GDP) | 84.1 %IMF est.2025 · IMF | |
| Current account balance (% of GDP) | -0.42 %2025 · WB | 1.21 %2024 · WB |
| Population | 1,463,865,5252025 · WB | 21,756,0002025 · WB |
| Area | 3,287,260 km²2023 · BM / FAO | 65,610 km²2023 · WB |
| Military expenditure | ||
| Military expenditure (% of GDP) |
Definitions, dates and sources
Blank cells are not zero. Average annual inflation and the latest year-on-year figure appear in separate rows: they are not the same measure. Every annual indicator retains its reference year; when the years differ, the figures are identified as not directly comparable. When a figure is unavailable from the World Bank, an annual IMF estimate is used and identified as such. The latest year-on-year figure is the latest official release verified as of 7 October 2026. This includes advance releases marked as provisional. Mexico may have a fortnightly figure before the full month is published; it is not automatically compared with a monthly figure. The publication date is retained in each source’s details; it does not replace the observation period or the annual average. Policy rates carry their own dates and represent different instruments. Spain and France share the ECB rate. Balances are positive for surpluses and negative for deficits. The IMF may use fiscal years; unemployment retains each source’s definition (ILO estimates, IMF WEO or PCBS), as stated in the details. For Palestine, debt and the fiscal balance cover central government and retain the PCBS definition; they are not presented as consolidated general government. These are economic magnitudes, not measures of relationship quality.
Area retains each source’s territorial coverage; it does not determine sovereignty or effective control. Canada uses an archived national geographic reference. Military expenditure retains the 2024 SIPRI sample distributed by the World Bank: the amount and percentage of GDP use that same definition, which differs from NATO’s. It is not an approved budget or a 2026 figure. Information from the Stockholm International Peace Research Institute (SIPRI). Military expenditure database · Terms of use0
Indicators reviewed: 2026-10-07. Each source retains its original access date; this review does not turn all the data into 2026 observations. Figures may be revised.
- Nominal GDP
- Current USDIndia: 2025 · World BankSri Lanka: 2025 · World Bank · Official World Bank series. Observation year, not download date.
- GDP per capita
- Current USD per personIndia: 2025 · World BankSri Lanka: 2025 · World Bank · Official World Bank series. Observation year, not download date.
- GDP growth
- Annual real change (%)India: 2025 · World BankSri Lanka: 2025 · World Bank · Official World Bank series. Observation year, not download date.
- Policy interest rate
- Central bank instrument (%)India: 2026-10-06 · RBI policy repo rate · Reserve Bank of India (RBI) · Access date for Current Rates; does not represent a new decision on 6 October. · Alternative official source; verified 2026-10-06
- Inflation · annual average
- Average annual change in headline CPI (%)India: 2025 · Average annual CPI change (%) · World BankSri Lanka: 2025 · Annual average CPI change (%) · World Bank · Official World Bank series. Observation year, not download date.
- Inflation · latest year-on-year figure
- Headline CPI relative to the same period of the previous year (%); monthly or fortnightly frequency statedIndia: 2026-08 · Headline CPI change relative to the same month of the previous year (%) · MoSPI / Press Information Bureau, Government of India · Published: 2026-09-14 · provisional · Provisional · Combined rural and urban headline CPI, 2024 base; provisional MoSPI figure. Not food or wholesale inflation. Provisional figure or official advance release; subject to revision.
- Unemployment
- % of the labour force; definition used by the stated institutionIndia: 2025 · World Bank · ILO est.Sri Lanka: 2025 · ILO modelled estimate; percentage of the labour force · World Bank · ILO est. · Official World Bank series. Observation year, not download date.
- Budget balance
- General government (% of GDP)India: 2025 · IMF — World Economic Outlook · IMF est.
- Gross public debt
- General government (% of GDP)India: 2025 · IMF — World Economic Outlook · IMF est.
- Current account balance
- % of GDPIndia: 2025 · World BankSri Lanka: 2024 · World Bank · Official World Bank series. Observation year, not download date.
- Population
- PeopleIndia: 2025 · World BankSri Lanka: 2025 · World Bank · Official World Bank series. Observation year, not download date. Preliminary.
- Area
- Total area in km²; territorial coverage of the sourceIndia: 2023 · Total area including inland waters; territorial coverage of the source · World Bank · FAOSri Lanka: 2023 · World Bank · Official World Bank series. Observation year, not download date.
- Military expenditure
- Current USD per year; SIPRI series
- Military expenditure (% of GDP)
- Percentage of GDP; SIPRI definition, not NATO’s definition
Other data specific to this relationship
What they buy and sell
Documented selection, not an exhaustive list. Cells without a figure do not mean zero value; some products are identified without a verified amount.
India to Sri Lanka
| Product or sector | Value / share |
|---|---|
| Mineral fuels and oils | 665.2 M USD2025 · Source |
| Land vehicles and components | 594.5 M USD2025 · Source |
| Machinery and mechanical appliances | 329.5 M USD2025 · Source |
| Pharmaceutical products | 266.5 M USD2025 · Source |
| Electrical and electronic equipment | 124.8 M USD2025 · Source |
Sri Lanka to India
| Product or sector | Value / share |
|---|---|
| Electrical and electronic equipment | 22.9 M USD2025 · Source |
| Mineral fuels and oils | 14.1 M USD2025 · Source |
| Machinery and mechanical appliances | 11.1 M USD2025 · Source |
| Pharmaceutical products | 4.1 M USD2025 · Source |
| Land vehicles and components | 2.3 M USD2025 · Source |
Connections between people
Education, work, visits and community connections have their own records and procedures. Residents are not equivalent to annual arrivals, and visits may be repeated. The tables retain dates, definitions and sources to distinguish these connections from business contracts and government decisions. [3]
Residents, study and travel
Blank cells: data unavailable. Each measure retains its definition and period.
| Indicator | Value | Period / source |
|---|---|---|
| Residents from India living in Sri Lanka | ||
| Residents from Sri Lanka living in India | ||
| Study and training: India in Sri Lanka | ||
| Study and training: Sri Lanka in India | ||
| Academic stays: India in Sri Lanka | ||
| Academic stays: Sri Lanka in India | ||
| Travel: India to Sri Lanka | ||
| Travel: Sri Lanka to India |
What each figure measures
Residents are counted by nationality and the coverage of the stated register, not as people born in the other country or as new arrivals in one year. PERE includes dual nationals and people born outside Spain. Study with OPT and stays carrying academic credit are different measures. Travel may include several visits by the same person; FRONTUR arrivals require an overnight stay, whereas the Canadian survey includes day visits. These figures are neither added together nor automatically compared across directions.
Mobility data added or reviewed: 2026-10-07. Reference periods may be earlier.
Underlying ties
History, institutions and long-standing issues.
Trade agreement and services negotiations
The Indian overview distinguishes bilateral trade from negotiations on the Economic and Technology Cooperation Agreement, intended to cover goods and services. A negotiation is not a final treaty already being applied. Its partial figures for fiscal year 2024–2025 are not presented as a complete calendar year. The profile's table uses a defined annual record from a single reporter. [1]
Trincomalee and cooperation with the Emirates
The seven memoranda of April 2025 include India–Sri Lanka–Emirates cooperation to develop Trincomalee as an energy hub. This is an instrument with three participants, not financing provided exclusively by India. Project planning, signing and operation have different milestones. The announcement does not certify that all planned facilities have been built or are generating income. [2]
Capacity building and debt restructuring
The published outcomes include a training programme for 700 Sri Lankan citizens annually and amendment agreements on debt restructuring. The announced training represents programme capacity, not a count of actual students. Restructuring debt changes financial terms; it is not equivalent to direct investment or a goods export. Cultural projects and assistance have a different scope. [3]
The scale of the two economies
India recorded nominal GDP of 3,956.1 billion USD in 2025, compared with 108.8 in 2025 for Sri Lanka. The reference populations were 1,463.87 million (2025) and 21.76 million (2025), respectively. In the same year, India's nominal GDP was 36.35 times Sri Lanka's. These figures provide context on market size; they do not, on their own, describe well-being, individual wealth or political influence. IMF estimates and demographic extrapolations retain their labels in the table. No ratio is calculated when the periods differ. [5] [6] [7] [8]
Recent developments
Recent developments and latest available data · Reviewed: 2026-10-07
The April 2025 instruments
The visit brought together seven memoranda across several sectors and announcements with their own implementation timetables. The documents identify specific issues, rather than provide an assessment of all subsequent implementation. Goods statistics show observed activity and keep financial resources, educational programmes and infrastructure construction separate. [2] [3]
Observed economic exchange
In 2025, recorded goods trade between India and Sri Lanka totalled 6,021.2 million USD. Shipments from India to Sri Lanka were 4,882.8 million USD; those in the reverse direction were 1,138.3 million USD. India's shipments to the partner represented 1.1% of its goods exports to the world, using the same year and reporter. A single customs reporting source is used for both directions. This annual flow does not include all services activity or affiliates' local sales and is not added to accumulated investment capital. [4]
Milestones and consequences
Sources and data
Periods and scope of the figures
Each figure retains its period, unit, definition and source. Announcements, contracts and results are not interchangeable. Empty cells do not mean zero. Customs data for 2025 are not presented as activity observed during later crises.
- India–Sri Lanka bilateral overview
Ministry of External Affairs of India · Institutional source · Document: 2025 · Accessed: 2026-10-07
- Seven cooperation memoranda
Presidency of Sri Lanka · Institutional source · Document: 2025-04-05 · Accessed: 2026-10-07
- Outcomes of the visit to Sri Lanka
India's Press Information Bureau · Institutional source · Document: 2025-04 · Accessed: 2026-10-07
- Annual TOTAL X/M; 2025; reporter 699; partners 0,392,36,784,682,376,364,50,524,144,360,704
UN Comtrade / IND · Institutional source · Accessed: 2026-10-07
- Official statistics
World Bank · Institutional source · Accessed: 2026-09-17
- NY.GDP.MKTP.CD; ISO and reference year; no military dataset expansion
World Bank · Institutional source · Accessed: 2026-10-07
- Official statistics
World Bank · Institutional source · Accessed: 2026-10-06
- SP.POP.TOTL; ISO and reference year; no military dataset expansion
World Bank · Institutional source · Accessed: 2026-10-07
- HS2 27; 2025; reporter 699; partners 392,36,784,682,376,364,50,524,144,360,704; X/M; annual goods
UN Comtrade / IND · Institutional source · Accessed: 2026-10-07
- HS2 30; 2025; reporter 699; partners 392,36,784,682,376,364,50,524,144,360,704; X/M; annual goods
UN Comtrade / IND · Institutional source · Accessed: 2026-10-07
- HS2 84; 2025; reporter 699; partners 392,36,784,682,376,364,50,524,144,360,704; X/M; annual goods
UN Comtrade / IND · Institutional source · Accessed: 2026-10-07
- HS2 85; 2025; reporter 699; partners 392,36,784,682,376,364,50,524,144,360,704; X/M; annual goods
UN Comtrade / IND · Institutional source · Accessed: 2026-10-07
- HS2 87; 2025; reporter 699; partners 392,36,784,682,376,364,50,524,144,360,704; X/M; annual goods
UN Comtrade / IND · Institutional source · Accessed: 2026-10-07
Additional sources on products and human connections
- UN Comtrade / IND
2026-10-07 · Accessed: 2026-10-07 · HS2 27; 2025; reporter 699; partners 392,36,784,682,376,364,50,524,144,360,704; X/M; annual goods.
- UN Comtrade / IND
2026-10-07 · Accessed: 2026-10-07 · HS2 87; 2025; reporter 699; partners 392,36,784,682,376,364,50,524,144,360,704; X/M; annual goods.
- UN Comtrade / IND
2026-10-07 · Accessed: 2026-10-07 · HS2 84; 2025; reporter 699; partners 392,36,784,682,376,364,50,524,144,360,704; X/M; annual goods.
- UN Comtrade / IND
2026-10-07 · Accessed: 2026-10-07 · HS2 30; 2025; reporter 699; partners 392,36,784,682,376,364,50,524,144,360,704; X/M; annual goods.
- UN Comtrade / IND
2026-10-07 · Accessed: 2026-10-07 · HS2 85; 2025; reporter 699; partners 392,36,784,682,376,364,50,524,144,360,704; X/M; annual goods.