Faculty of Economics and Commerce, The Superior University, Lahore
Sri Lanka is strategically located in South Asia, sharing its maritime boundaries with neighbouring countries, India and the Maldives. Spanning an area of 65,610 square kilometres, this island nation boasts Colombo as both its capital and its most significant city.
Sri Lanka Trade Profile:
1.1. Geographical and Historical Overview of Sri Lanka
Sri Lanka is strategically located in South Asia, sharing its maritime boundaries with neighbouring countries, India and the Maldives. Spanning an area of 65,610 square kilometres, this island nation boasts Colombo as both its capital and its most significant city. Historically, Sri Lanka has undergone pivotal milestones; it gained its independence as the Dominion of Ceylon on February 4, 1948. This was further solidified when it transitioned into the Republic of Sri Lanka on May 22, 1972.
1.2. The Maritime Importance of Sri Lanka
The maritime trade landscape of the Indian Ocean is deeply impacted by the rising prowess of nations like China and India. As a testament to this, the Indian Ocean facilitates a whopping 70.0 per cent of the world’s oil trade, half of its shipping containers, and 35.0 per cent of global bulk cargo. Within this context, Sri Lanka, with its bays and anchorages, emerges as a significant transit trade centre.
1.3. Trade Infrastructure:
Ports and Their Development Historically, Sri Lanka’s prominence in trade can be traced back to its interactions with traders spanning the Indian Ocean, the Arab regions, and even Southeast Asia. Fast forward to the modern era, and we see Sri Lanka benefitting immensely from China’s One-Belt-One-Road (OBOR) Initiative. The Port of Colombo exemplifies this growth and strategic importance. Today, it not only caters to 87.0 per cent of global shipping but also proudly ranks 28th according to the World Shipping Council.
