India is the largest trading partner of Sri Lanka. It imports goods worth USD 3 billion from Sri Lanka and exports goods worth USD 4.5 billion to it. India’s exports to Sri Lanka are mainly petroleum products, tea, coffee, cotton, and rice. The crisis has had a negative impact on the Indian economy in terms of trade with Sri Lanka as well as investments by Indian companies in the island nation.
The crisis in Sri Lanka has had a significant impact on India’s economy. The crisis in Sri Lanka has resulted in a fall of around 40% in the number of Indian tourists to the country. The economic growth rate of India is expected to be reduced by 0.5% due to the crisis in Sri Lanka.
Sri Lanka is a small island nation south of India. It was once an economic powerhouse in the region with high growth rates and booming tourism industry. However, an economic crisis that started in the 1990s crippled Sri Lanka’s economy and led to poverty, a high unemployment rate, and political instability. India-Sri Lankan relations have been historically good because of their shared colonial past as well as their common culture and religion.
