Thailand: Economic & Trade
Economic and social Indicators – Thailand and Sri Lanka
| Thailand | Sri Lanka | |
| Official Name | Kingdom of Thailand | Democratic Socialist Republic of Sri Lanka |
| Area | 513,120 sq. km | 65,610 Sq. Km |
| Capital | Bangkok | Sri Jayewardenepura Kotte |
| Population | 69,794,997 (2023 est.) | 23,326,272 (2023 est.) |
| Life Expectancy | 77.41 years (2021 est.) | 75.5 Years (2017) |
| Ethnic Groups | Thai 97.5%, Burmese 1.3%, other 1.1%, unspecified 0.1% (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 94.6%, Muslim 4.3%, Christian 1%, other (2015 est.) | Buddhist 70.2%, Hindu 12.6%, Muslim 9.7%, Roman Catholic 6.1%, Other Christian 1.3% (2012) |
| GDP | USD 543.798 billion (2019 est.) | USD 84.5 billion (2021) |
| GDP – Rate | 2.62% (2019 est.) | 3.7% (2021 Provisional) |
| GDP – Per Capita | USD 7,186.87 (2019) Source World Bank | USD 3,814 (2021) (Source: World Bank) |
| GDP Composition by Sector | Agriculture: 8.2% (2017 est.) | Agriculture: 7% (2020 excluding taxes) |
| Industry: 36.2% (2017 est.) | Industry: 25.5% (2020 excluding taxes) | |
| Services: 55.6% (2017 est.) | Services: 58.7% (2020 excluding taxes) | |
| Labor Force | 37.546 million (2020 est.) | 8.553 Million (2021) |
| Labor Force – By Occupation | Agriculture: 31.8% | Agriculture: 27.3% (2021) |
| Industry: 16.7% | Industry: 26.0% (2021) | |
| Services: 51.5% (2015 est.) | Services: 46.7% (2021) | |
| Unemployment Rate | 0.99% (2019 est.) | 5.1% (2021) |
| Inflation Rate | 0.7% (2019 est.) | 6% (2021) |
| Agriculture Products | Sugar Cane, Cassava, Rice, Oil palm fruit, Rubber, Maize, Tropical fruit, Poultry, Pineapples, Mangoes/Guavas | Rice, Sugarcane, Grains, Pulses, Oilseed, Spices, Vegetables, Fruit, Tea, Rubber, Coconuts; Milk, Eggs, Beef; Fish |
| Industries | Tourism, Textiles And Garments, Agricultural Processing, Beverages, Tobacco, Cement, Light Manufacturing Such As Jewelry And Electric Appliances, Computers And Parts, Integrated Circuits, Furniture, Plastics, Automobiles And Automotive Parts, Agricultural Machinery, Air Conditioning And Refrigeration, Ceramics, Aluminum, Chemical, Environmental Management, Glass, Granite And Marble, Leather, Machinery And Metal Work, Petrochemical, Petroleum Refining, Pharmaceuticals, Printing, Pulp And Paper, Rubber, Sugar, Rice, Fishing, Cassava, World’s Second-Largest Tungsten Producer And Third-Largest Tin Producer | Processing of Rubber, Tea, Coconuts, Tobacco and Other Agricultural Commodities; Telecommunications, Insurance, Banking; Tourism, Shipping; Clothing, Textiles; Cement, Petroleum Refining |
| Export | $296.002 billion (2021 est.) | USD 12.249 Billion (2021) |
| Exports Commodities | Office Machinery/Parts, Cars And Vehicle Parts, Integrated Circuits, Delivery Trucks, Gold (2019) | Textiles and Apparel, Tea and Spices; Rubber Manufactures; Precious Stones; Coconut Products, Fish |
| Exports Partners | United States 13%, China 12%, Japan 10%, Vietnam 5% (2019) | US 25.07%, UK 7.63%, India 6.66%, Germany 6.16%, Italy 4.72% (2021) |
| Imports | $295.78 billion (2021 est.) | USD 20.052 Billion (2021) |
| Imports Commodities | Crude Petroleum, Integrated Circuits, Natural Gas, Vehicle Parts, Gold (2019) | Petroleum, Textile Yarn, Fabrics, Made-Up Articles, Machinery and Transportation Equipment, Building Materials, Mineral Products, Foodstuffs |
| Import partners | China 22%, Japan 14%, United States 7%, Malaysia 6% (2019) | China 23.71%, India 22.05%, UAE 6.55%, Malaysia 3.84%, Singapore 3.61% (2021) |
Source: The World Fact book
1. Sri Lanka’s Exports, Imports, Total Trade & Balance of Trade with Thailand
The total trade turnover between Sri Lanka and Thailand, as shown in table 1 below, has been rather erratic during the last five years.
Table 1: Trade with Thailand 2017-2022
Values in US$ Mn.
| Year | Exports | Imports | Total Trade Turnover | Trade Balance | Import Coverage (%) | |||
| Value | Growth (%) | Value | Growth (%) | Value | Growth (%) | |||
| 2017 | 52.59 | – | 518.54 | – | 571.13 | – | (465.96) | 10.14 |
| 2018 | 44.55 | (15.28) | 497.57 | (4.04) | 542.13 | (5.08) | (453.02) | 8.95 |
| 2019 | 97.44 | 118.71 | 437.94 | (11.98) | 535.38 | (1.24) | (340.50) | 22.25 |
| 2020 | 37.58 | (61.44) | 366.34 | (16.35) | 403.91 | (24.56) | (328.76) | 10.26 |
| 2021 | 51.61 | 37.34 | 397.85 | 8.60 | 449.46 | 11.28 | (346.24) | 12.97 |
| 2022 | 58.82 | 13.97 | 292.68 | (26.43) | 351.50 | (21.80) | (233.86) | 20.10 |
Source: Sri Lanka Customs
In 2019, there was a sharp increase in Sri Lanka’s export to Thailand to the value of US$ 97.44 million mainly due to the increase in the export value of precious stones and wheat or meslin flour from Sri Lanka to Thailand. But in 2020 it decreased by 61% due to the disruptions to local production and support services following the resurgence of COVID-19 cases since mid of 2020. Once again, the exports have increased in 2021 as the export earnings from knitted or crocheted fabrics; printed books, newspapers, pictures and other products of the printing industry; and precious stones has been increased 2021. It has further increased in 2022, registering a 13.97% growth to the previous year with a substantial increase in exports of precious stones and semi-precious stones. The balance of trade has been in favor of Thailand, while the gap reduced over the year. Since 2018 there has been a significant reduction in Sri Lanka’s imports from Thailand.
- Thailand was the 37 th export market for Sri Lanka with a share of 0.46% in 2022. In 1977, Thailand was Sri Lanka’s 43 rd export market with a share of 0.24%.
- In the light of table 02 below, precious stones and semi Precious stones have become the dominant export item accounting for 57.14% of the value of Sri Lanka‘s exports to Thailand in 2022. Exports of Precious stones have become almost double in 2022.
Table 2: Sri Lanka’s Major Export Items to Thailand (2018 – 2022)
Values in US$ Mn.
| HS | Description | 2018 | 2019 | 2020 | 2021 | 2022 | Share in 2022 (%) | Change in 2022 over 2021 (%) |
| 7103 | Precious stones and semi-precious stones | 8.04 | 54.96 | 11.33 | 16.27 | 33.61 | 57.14 | 106.58 |
| 110100 | Wheat or meslin flour. | 4.75 | 6.67 | 4.93 | 3.56 | 3.69 | 6.27 | 3.65 |
| 8532 | Electrical capacitors. | 2.09 | 2.10 | 1.45 | 2.07 | 3.07 | 5.22 | 48.31 |
| 61 & 62 | Apparel | 3.94 | 4.00 | 1.85 | 1.58 | 2.89 | 4.91 | 82.91 |
| 0306 | Crustaceans | 3.89 | 5.93 | 3.68 | 3.03 | 2.88 | 4.90 | -4.95 |
| 3802 | Activated carbon | 0.36 | 0.42 | 0.56 | 1.36 | 1.29 | 2.19 | -5.15 |
| 27101960 | Fuel oil | 0.68 | 0.14 | 0.13 | 0.22 | 1.11 | 1.89 | 404.55 |
| 83 | Miscellaneous articles of base metal | 0.88 | 0.86 | 0.59 | 1.05 | 1.05 | 1.79 | 0.00 |
| 90 | The optical, photographic, cinematographic, medical or surgical instrument | 2.05 | 2.61 | 2.59 | 1.25 | 1.03 | 1.75 | -17.60 |
| 56 | Wadding felt & nonwovens special yarns twine | 0.41 | 0.81 | 0.42 | 0.58 | 1.01 | 1.72 | 74.14 |
| 0902 | Tea | 1.51 | 1.30 | 0.74 | 0.59 | 0.94 | 1.60 | 59.32 |
| Other | 15.96 | 17.64 | 9.30 | 20.03 | 6.24 | 10.61 | -68.85 | |
| Total | 44.55 | 97.44 | 37.58 | 51.61 | 58.82 | 100.00 | 13.97 | |
Source: Sri Lanka Customs
- Thailand was the 11 th Import partner of Sri Lanka with a share of 1.75% in 2022.
- As shown in table 3, smoked sheet rubber was the main item imported by Sri Lanka from Thailand with 9.62% of total Sri Lanka’s imports in 2022.
Table 3: Sri Lanka’s Major Import Items from Thailand (2018 –2022)
Values in US$ Mn.
| HS Code | Description | 2018 | 2019 | 2020 | 2021 | 2022 | Share in 2022 (%) | Change in 2022 over 2021 (%) |
| 400121 | Smoked sheet rubber | 16.24 | 11.61 | 8.84 | 28.38 | 28.17 | 9.62 | -0.74 |
| 39 | Plastics and articles thereof | 32.72 | 24.35 | 18.34 | 36.14 | 24.48 | 8.36 | -32.26 |
| 4001 | Natural rubber | 10.80 | 8.97 | 12.86 | 17.31 | 21.78 | 7.44 | 25.82 |
| 60 | Knitted or crocheted fabrics | 19.34 | 22.43 | 14.97 | 18.28 | 21.02 | 7.18 | 14.99 |
| 17019910 | White crystalline cane sugar | 13.32 | 41.61 | 14.76 | 15.11 | 13.16 | 4.50 | -12.91 |
| 54 | Man-made filaments | 7.16 | 7.21 | 6.78 | 9.91 | 10.88 | 3.72 | 9.79 |
| 0305 | Fish, dried, salted or in brine | 43.13 | 32.62 | 22.61 | 18.34 | 10.87 | 3.71 | -40.73 |
| 84 | Nuclear reactors, boilers, machinery | 17.90 | 16.85 | 11.66 | 20.79 | 9.99 | 3.41 | -51.95 |
| 2523 | Portland cement, aluminous cement | 39.00 | 14.51 | 11.92 | 13.40 | 9.16 | 3.13 | -31.64 |
| 23 | Residues and waste from the food industries | 8.47 | 5.74 | 5.95 | 9.32 | 8.35 | 2.85 | -10.41 |
| 55 | Man-made staple fibres | 20.99 | 25.01 | 16.37 | 10.82 | 7.46 | 2.55 | -31.05 |
| 19 | Preparations of cereals | 18.02 | 10.56 | 18.59 | 8.41 | 5.97 | 2.04 | -29.01 |
| 72 & 73 | Iron and Steel | 13.69 | 18.71 | 29.34 | 12.09 | 5.57 | 1.90 | -53.93 |
| 48 | Paper and paperboard | 9.48 | 9.26 | 5.50 | 5.05 | 5.22 | 1.78 | 3.37 |
| Other | 227.31 | 188.50 | 167.85 | 174.47 | 110.60 | 37.79 | -36.61 | |
| Total | 497.57 | 437.94 | 366.34 | 397.85 | 292.68 | 100.00 | -26.43 | |
Source: Sri Lanka Customs
2. Scope for further expansion of Sri Lanka’s Exports to Thailand
The products with the greatest export potential from Sri Lanka to Thailand are gems like rubies, sapphires & emeralds; solid/cushion tyres, interchangeable tyre treads & tyre flaps and black tea. Sri Lanka has the highest supply capacity in black tea and diamonds is the product that faces the strongest demand potential in Thailand. In terms of the growing demand pattern in Thailand and considering the sustainable supply capacities of Sri Lanka, the following products can be further expanded in Thailand.
- Prepared or preserved tunas
- Copper cathodes
- Flours of fish or crustaceans
- Skipjack & bonito frozen
- Telephone sets and other voice/image transmission apparatus
- Electric conductors <=1V fitted with connectors
- Cane molasses from sugar refining
- Shrimps and prawns live, fresh/chilled cured
- Groundnuts excluding roasted or cooked
- Edible products of animal origin
3. Proposed Sri Lanka-Thailand Free Trade Agreement (SLTFTA)
- Both countries agreed in establishing Sri Lanka-Thailand Free Trade Agreement (SLTFTA) at the second meeting of the Sub-Committee on Trade-Related matters between Thailand and Sri Lanka which was held on 2nd June 2017 in Bangkok.
- Three rounds of negotiation on the proposed FTA were concluded. The 1st round of negotiations was held on 13.07.2018 in Colombo whereas the 2nd round was held on 19th & 20th September 2018 in Bangkok to cover trade in goods at first and subsequently to expand the scope to a comprehensive FTA.
- The third round of negotiations between Sri Lanka and Thailand on the proposed Free Trade Agreement (FTA) was held on January 9 and 10, 2023 in Colombo. Discussions of Working Groups on Trade in Goods, Trade in Services, Rules of Origin, Custom Procedure and Trade Facilitation, Investment and economic co-operation were held during the 3rd rounds of negotiation.
4. Thailand – Sri Lanka Joint Commission
The 4th Session of the Joint Commission at the Foreign Minister level is to be hosted by the Thai Side. The 3rd Session was held in Colombo in 2013.
5. Strategic Economic Partnership between Sri Lanka and Thailand
Referring to the official visit of Prime Minister of Thailand, General Prayut Chan-o-cha, to Sri Lanka on 12 -13 July 2018, the Government of the Kingdom of Thailand and the Government of Sri Lanka signed the Memorandum of Understanding (MOU) on Strategic Economic Partnership.
To effectively implement strategic economic partnership between both sides, a Joint Action Plan on Strategic Economic Partnership had been developed taking into account the evolving business and economic environment and economic policies and priorities. Both countries mutually decided to cooperate on 10 priority economic cooperation areas; namely, investment, infrastructure, development of agro industry, fisheries, gems and jewellery, tourism, SMEs, financial cooperation, packaging industries and IT sector development.
The 4th Meeting of the Sub-Committee on Trade-Related Matters between Sri Lanka and Thailand was held on 06th May 2022.
6. Application of the Sufficiency Economic Philosophy (SEP) in Sri Lanka
During the Thai Prime Minister’s visit in 2018, the Government of Sri Lanka entered into a Joint Action Programme; One Village One Product (OVOP) with the Government of Thailand, in collaboration with Thailand International Cooperation Agency (TICA), on the application of the Sufficiency Economic Philosophy (SEP) in Sri Lanka which was an inspiration of One Tambon One Product (OTOP) programme in Thailand. The OTOP is a local entrepreneurship programme which aims to support production and marketing of locally made products of each sub district (Tambon) of Thailand. Several projects are being carried out under this concept in Sri Lanka with the assistance of the Government of Thailand.
Additional Bilateral Trade Statistics – Thailand
| Year | Rank | Value US. Mn. | % of total export to the world | Growth (Multiples) |
| 1977 | 43 | 1.65 | 0.24 | – |
| 2022 | 37 | 58.82 | 0.46 | 21.60 |
Source: Sri Lanka Customs
Note: Sri Lanka’s total exports to the world which stood at US$ 743 Mn. in 1977 reached US$ 12,743.64 Mn. in 2022, registering a 17-fold growth.
Values in US$ Mn.
| Year | Export | Share of total export to the world (%) | Import | Total Trade | Balance of Trade |
| 1995 | 18.34 | 0.48 | 114.25 | 132.59 | -95.91 |
| 2000 | 77.20 | 1.46 | 160.22 | 237.43 | -83.02 |
| 2001 | 36.87 | 0.78 | 147.57 | 184.44 | -110.70 |
| 2002 | 14.15 | 0.30 | 146.06 | 160.21 | -131.91 |
| 2003 | 11.14 | 0.23 | 145.93 | 157.07 | -134.80 |
| 2004 | 18.50 | 0.34 | 151.86 | 170.35 | -133.36 |
| 2005 | 26.57 | 0.43 | 168.17 | 194.75 | -141.60 |
| 2006 | 37.43 | 0.55 | 202.95 | 240.38 | -165.52 |
| 2007 | 46.76 | 0.61 | 230.74 | 277.50 | -183.99 |
| 2008 | 77.65 | 0.95 | 297.94 | 375.58 | -220.29 |
| 2009 | 62.79 | 0.88 | 270.47 | 333.25 | -207.68 |
| 2010 | 84.05 | 1.01 | 315.93 | 399.98 | -231.88 |
| 2011 | 75.67 | 0.76 | 491.05 | 566.72 | -415.38 |
| 2012 | 70.37 | 0.75 | 460.21 | 530.58 | -389.84 |
| 2013 | 56.54 | 0.57 | 428.02 | 484.55 | -371.48 |
| 2014 | 57.02 | 0.50 | 462.02 | 519.04 | -405.01 |
| 2015 | 33.51 | 0.36 | 497.75 | 531.26 | -464.23 |
| 2016 | 35.27 | 0.34 | 514.80 | 550.08 | -479.53 |
| 2017 | 52.59 | 0.46 | 518.54 | 571.13 | -465.96 |
| 2018 | 44.55 | 0.38 | 497.57 | 542.13 | -453.02 |
| 2019 | 97.44 | 0.83 | 437.94 | 535.38 | -340.50 |
| 2020 | 37.58 | 0.38 | 366.34 | 403.92 | -328.76 |
| 2021 | 51.61 | 0.42 | 397.85 | 449.46 | -346.24 |
| 2022 | 58.82 | 0.46 | 292.68 | 351.50 | -233.86 |
Source: Sri Lanka Customs / Trade Map
Number of Foreign Training Opportunities received from Thailand from 2015 – 2019
|
Donor |
2015 | 2016 | 2017 | 2018 | 2019 | |||||||
| Short Term | Long Term | Short Term | Long Term | Short Term | Long Term | Short Term | Long Term | Short Term | Long Term | |||
| Thailand | 19 | 2 | 16 | 7 | 25 | 2 | 21 | 0 | 17 | 2 | ||
Number of Foreign Training Opportunities received from Thailand in 2023
| No. of Programme | Received Application | No of Selections | ||||
| Donor | Short Term | Long Term | Short Term | Long Term | Short Term | Long Term |
| Thailand | 11 | 19 | 24 | 0 | 24 | 0 |
For the Government of Sri Lanka, Thailand International Cooperation Agency (TICA) offers scholarships for year 2023 under themes of Sufficiency Economy Philosophy, Public Health, Agriculture and Food Security, Climate Change and Environmental Issues, Bio Circular Green (BCG) Economy Model and other Sustainable Development Goals (SDGs) related topics.
2-year Implementation Plan between Sri Lanka and Thailand (2023-2024)
Thailand International Cooperation Agency (TICA) has drafted a 2-year Implementation Plan between Sri Lanka and Thailand (2023-2024) in order to facilitate long term development cooperation between the two countries. 06 Projects have been identified by TICA under the 02 year plan.
| Project | Suggested Implementing Agency in Sri Lanka | Feedback/comments received from the Implementing Agency | |
| 01 | Project on Community Based Tourism in Wathupola, Village, Puttalam |
|
A two-year implementation plan including estimated cost for the project has been submitted by the Department of Samurdhi Development. The proposed plan included extending the project to other 10 villages in Puttalam District. The Department of Samurdhi Development has further requested to extend the support of TICA on Wathupola Banana cultivation project, which was facilitated by TICA over the past years. |
| 02 | Project on One Village One Product (OVOP) Development |
|
03 project proposals have been submitted by the National Crafts Council
|
| 03 | Training and Expert Service on Marine Ornamental Fish Breeding |
|
A concept note has been submitted by the National Aquaculture Development Authority requesting training and expert service on marine ornamental fish breeding |
| 04 | Project on Elephants Welfare and Rehabilitation | Ministry of Foreign Affairs | |
| 05 | Annual International Training Course (AITC) | Department of External Resources | The Department of External Resources wishes to discuss further details on the proposed fellowships. |
| 06 | Thailand International Postgraduate Programme (TIPP) | Department of External Resources |
Employment opportunities for Sri Lankans
According to the Ministry of Labour, there were nearly 300 Sri Lankan skilled workers in Thailand, before COVID-19 pandemic, who were engaged in management, manufacturing, teaching, library, technical and architecture services.
At present, the total number of Sri Lankans who are registered with the Mission is 176, out of which 153 are employed in Thailand. The total number of Sri Lankan students in Thailand registered with the Embassy is 60. (Asian Institute of Technology- 25, Asia-Pacific International University- 06, SIIT University-15, Chiang Mai University- 06, Thammasat University-04, Rangsit University- 02, King Mongkut’ Institute of Technology Ladkrabang: 01, Mae Fah Luang University: 01
Thailand’s economy is gradually awakening from the set back of Covid pandemic effects. Even under such circumstances, the Permanent Secretary agreed to accommodate on providing employment opportunities in skilled sector for the public sector employees in Sri Lanka and requested to forward CVs of potential candidates who are willing to work in Thailand in skilled sector, in order to coordinate with Thai employers and to arrange online discussions for selections.
