Economic & Trade in Laos
Economic and social Indicators – Laos and Sri Lanka
| Laos | Sri Lanka | |
| Official Name | Lao People’s Democratic Republic | Democratic Socialist Republic of Sri Lanka |
| Area | 236,800 Sq km | 65,610 Sq. Km |
| Capital | Vientiane (Viangchan) | Sri Jayawardenepura Kotte |
| Population | 7,852,377 (2023 est.) | 23,326,272 (2023 est.) |
| Life Expectancy | 66 years | 75.5 Years (2017) |
| Ethnic Groups | Lao 53.2%, Khmou 11%, Hmong 9.2%, Phouthay 3.4%, Tai 3.1%, Makong 2.5%, Katong 2.2%, Lue 2%, Akha 1.8%, other 11.6% (2015 est.) | Sinhalese 74.9%, Sri Lankan Tamil 11.2%, Sri Lankan Moors 9.2%, Indian Tamil 4.2%, Other 0.5% (2012) |
| Religions | Buddhist 64.7%, Christian 1.7%, none 31.4%, other/not stated 2.1% (2015 est.) | Buddhist 70.2%, Hindu 12.6%, Muslim 9.7%, Roman Catholic 6.1%, Other Christian 1.3% (2012) |
| GDP | USD 18.246 billion (2019) | USD 84.5 billion (2021) |
| GDP – Rate | 0.44% (2020) | 3.7% (2021 Provisional) |
| GDP – Per Capita | USD 1,835.66 (2020) (Source: World Bank) | USD 3,814 (2021) (Source: World Bank) |
| GDP Composition by Sector | Agriculture: 20.9% | Agriculture: 7% (2020 excluding taxes) |
| Industry: 33.2% | Industry: 25.5% (2020 excluding taxes) | |
| Services: 45.9% (2017 est.) | Services: 58.7% (2020 excluding taxes) | |
| Labor Force | 3.582 million (2017 est.) | 8.553 Million (2021) |
| Labor Force – By Occupation | Agriculture: 73.1% | Agriculture: 27.3% (2021) |
| Industry: 6.1% | Industry: 26.0% (2021) | |
| Services: 20.6% (2012 est.) | Services: 46.7% (2021) | |
| Unemployment Rate | 0.7% (2017 est.) | 5.1% (2021) |
| Inflation Rate | 0.8% (2017 est.) | 6% (2021) |
| Agriculture Products | Rice, Roots/Tubers, Cassava, Sugar Cane, Vegetables, Bananas, Maize, Watermelons, Coffee, Taro | Rice, Sugarcane, Grains, Pulses, Oilseed, Spices, Vegetables, Fruit, Tea, Rubber, Coconuts; Milk, Eggs, Beef; Fish |
| Industries | Mining (Copper, Tin, Gold, Gypsum); Timber, Electric Power, Agricultural Processing, Rubber, Construction, Garments, Cement, Tourism | Processing of Rubber, Tea, Coconuts, Tobacco and Other Agricultural Commodities; Telecommunications, Insurance, Banking; Tourism, Shipping; Clothing, Textiles; Cement, Petroleum Refining |
| Export | $7.82 billion (2021 est.) | USD 12.249 Billion (2021) |
| Exports Commodities | Electricity, Copper, Rubber, Gold, Flavored Water | Textiles and Apparel, Tea and Spices; Rubber Manufactures; Precious Stones; Coconut Products, Fish |
| Exports Partners | Thailand 36%, China 28%, Vietnam 16% (2019) | US 25.07%, UK 7.63%, India 6.66%, Germany 6.16%, Italy 4.72% (2021) |
| Imports | $6.527 billion (2021 est.) | USD 20.052 Billion (2021) |
| Imports Commodities | Refined Petroleum, Cars, Cattle, Iron Structures, Steel Products | Petroleum, Textile Yarn, Fabrics, Made-Up Articles, Machinery and Transportation Equipment, Building Materials, Mineral Products, Foodstuffs |
| Import Partners | Thailand 53%, China 26%, Vietnam 10% (2019) | China 23.71%, India 22.05%, UAE 6.55%, Malaysia 3.84%, Singapore 3.61% (2021) |
Source: The World Fact book/Central Bank of Sri Lanka/Sri Lanka Customs
1. Sri Lanka’s Exports, Imports, Total Trade & Balance of Trade with Laos
The total trade turnover between Sri Lanka and Laos, as shown in table 1 below, has been minimal and erratic during the last 6 years.
Table 1: Trade with Laos
Values in US$ Mn.
| Year | Exports | Imports | Total Trade Turnover | Trade Balance | Import Coverage (%) | |||
| Value | Growth (%) | Value | Growth (%) | Value | Growth (%) | |||
| 2017 | 0.2194 | – | 0.2693 | – | 0.4886 | – | -0.0499 | 81.47 |
| 2018 | 0.0146 | -93.34 | 0.0250 | -90.72 | 0.0396 | -91.90 | -0.0104 | 58.43 |
| 2019 | 0.0024 | -83.83 | 0.0479 | 91.69 | 0.0503 | 26.96 | -0.0455 | 4.93 |
| 2020 | 0.0016 | -31.15 | 0.0864 | 80.43 | 0.0880 | 75.19 | -0.0848 | 1.88 |
| 2021 | 0.1048 | 6345.15 | 1.4282 | 1,552.70 | 1.5330 | 1,641.20 | -1.3234 | 7.34 |
| 2022 | 0.0079 | -92.46 | 0.56 | -61.00 | 0.56 | -63.15 | -0.55 | 1.42 |
Source: Sri Lanka Customs
Sri Lanka’s exports to Laos in last 6 years reached to its peak in 2017 and remained at low levels thereafter. However, a remarkable growth in exports has been recorded in 2021 but again significantly declined in 2022. The trade balance has been negative for Sri Lanka during the last 6 years. On the import front, Sri Lanka’s imports from Laos reached to its peak level in 2021 recording a significant growth compared to 2020.
Sri Lanka’s Exports to Laos
- Laos was the 194th export market for Sri Lanka with a share of 0.0006% in 2022.
- In the light of table 02 below, special wowen fabric has become the dominant export item accounting for 90% of the value of Sri Lanka‘s exports to Laos in 2022.
Table 2: Sri Lanka’s Major Export Items to Laos (2018 – 2022)
Values in US$ Mn.
| HS Code | Description | 2018 | 2019 | 2020 | 2021 | 2022 | Share in 2022 (%) | Change in 2022 over 2021 (%) |
| 58 | Special woven fabrics | – | – | – | 0.03 | 0.01 | 90 | -75.45 |
| 1211 | Plants and parts of plants | – | – | – | – | 0.0007 | 9 | – |
| 0902 | Tea | – | – | – | – | 0.0001 | 1 | – |
| 26 | Ores, slag and ash | – | – | – | 0.02 | – | – | – |
| 32 | Tanning or dying extracts | – | – | – | 0.0004 | – | – | – |
| 39 | Plastics and articles | – | – | 0.0003 | – | – | – | – |
| 49 | Printed books, newspapers | 0.0001 | – | – | – | – | – | – |
| 52 | Cotton | – | – | 0.0001 | – | – | – | – |
| 60 | Knitted or crocheted fabrics | 0.00007 | – | – | 0.0003 | – | – | – |
| 61 & 62 | Apparel | – | 0.002 | – | 0.02 | – | – | – |
| 7113 | Articles of Jewellery | 0.01 | – | – | – | – | – | |
| 72 & 73 | Iron and Steel | – | – | 0.001 | – | – | – | – |
| 27101960 | Fuel oil | – | – | – | 0.04 | – | – | – |
| Other exports | 0.0001 | – | – | 0.00006 | – | – | – | |
| Total exports | 0.01 | 0.00 | 0.00 | 0.10 | 0.01 | 100 | -92.46 | |
Source: Sri Lanka Customs
Sri Lanka’s Imports from Laos
- Laos was the 89th Import partner of Sri Lanka with a share of 0.003% in 2022.
- As shown in Table 3, fertilizer has become major imported item from Laos which has accounted 61.16% from the total import from Laos in 2021.
Table 3: Sri Lanka’s Major Import Items from Laos (2018 –2022)
Values in US$ Mn.
| HS Code | Description | 2018 | 2019 | 2020 | 2021 | 2022 | Share in 2022(%) | Change in 2022 over 2021 (%) |
| 31 | Fertilisers | – | – | – | – | 0.34 | 61.16 | – |
| 48 | Paper and paperboard | 0.00002 | – | – | 1.34 | 0.21 | 38.20 | -84.32 |
| 8504 | Electrical transformers | – | – | – | – | 0.0001 | 0.02 | – |
| 49 | Printed books, newspapers | – | – | 0.01 | 0.000002 | 0.0001 | 0.02 | – |
| 61 & 62 | Apparel | 0.00004 | 0.00009 | 0.00002 | 0.0001 | 0.02 | – | |
| 9503 | Tricycles, scooters, pedal cars and similar wheeled toys: | – | – | – | – | 0.0001 | 0.02 | – |
| Other Imports | 0.02 | 0.05 | 0.08 | 0.09 | 0.01 | 0.04 | -100 | |
| Total imports | 0.02 | 0.05 | 0.09 | 1.43 | 0.56 | 100 | -61 | |
Source: Sri Lanka Customs
Preferential Trade
The Asia-Pacific Trade Agreement (APTA), formerly known as Bangkok Agreement was signed on 2nd November 2005 and it came into force with effect from 1st September 2006. Both Sri Lanka and Laos are members of the APTA.
There is no trade between the two countries under APTA.
2. Scope for further expansion of Sri Lanka’s Exports to Laos
In terms of the growing demand pattern in Laos and considering the sustainable supply capacities of Sri Lanka, following products can be further expanded in Laos.
– Solid/cushion tyres, interchangeable tyre treads & tyre flaps
– Preparations used inanimal feeding
– Black tea, packings<=3kg
– New pneumatic tyres
– Bords for electric control
– Natural rubber
– Portland cement
– Broken rice
Additional Bilateral Trade Statistics – Laos
| Year | Rank | Value US. Mn. | % of total export to the world | growth (Multiples) |
| 1977 | – | – | – | – |
| 2022 | 174 | 0.10 | 0.0009 | – |
Source: Sri Lanka Customs
Note: Sri Lanka’s total exports to the world which stood at US$ 743 Mn. in 1977 has reached US$ 12,249 Mn. in 2021, registering a 16-fold growth.
Additional Bilateral Trade Statistics
Values in US$ Mn.
| Year | Export | Share of total export to the world (%) | Import | Total Trade | Balance of Trade |
| 1995 | – | – | – | – | – |
| 2000 | 0.03 | 0.0007 | – | 0.03 | 0.03 |
| 2001 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2002 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2003 | 0.13 | 0.003 | 0.00 | 0.13 | 0.13 |
| 2004 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2005 | 0.11 | 0.002 | 0.00 | 0.11 | 0.11 |
| 2006 | 0.02 | 0.0002 | 0.02 | 0.04 | 0.00 |
| 2007 | 0.04 | 0.0005 | 0.00 | 0.04 | 0.04 |
| 2008 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2009 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2010 | 0.01 | 0.0001 | 0.00 | 0.01 | 0.01 |
| 2011 | 0.10 | 0.001 | 0.01 | 0.11 | 0.09 |
| 2012 | 0.09 | 0.0009 | 0.00 | 0.09 | 0.09 |
| 2013 | 0.09 | 0.0009 | 0.09 | 0.18 | 0.00 |
| 2014 | 0.02 | 0.0002 | 0.00 | 0.02 | 0.02 |
| 2015 | 0.004 | 0.00004 | 0.43 | 0.43 | -0.42 |
| 2016 | 2.15 | 0.02 | 7.60 | 9.74 | -5.45 |
| 2017 | 0.22 | 0.002 | 0.27 | 0.49 | -0.05 |
| 2018 | 0.01 | 0.0001 | 0.02 | 0.04 | -0.01 |
| 2019 | 0.002 | 0.00002 | 0.05 | 0.05 | -0.05 |
| 2020 | 0.002 | 0.00002 | 0.09 | 0.09 | -0.09 |
| 2021 | 0.10 | 0.0009 | 1.43 | 1.53 | -1.32 |
| 2022 | 194 | 0.0006 | 0.56 | 0.56 | -0.55 |
Source: Sri Lanka Customs / Trade Map
