The first ever Sri Lanka-Russia official trade talks were successfully concluded in Moscow on 12 February. The talks covered a wide array of relevant topics-with Russian side showing an extra interest in agricultural cooperation.

The Sri Lanka-Russia Intergovernmental Joint Commission on Trade, Economic, Science and Technical Cooperation, is one of the primary mechanisms to discuss ways and to resolve various issues and boost bilateral trade, scientific and technical cooperation. The sessions initiated and organized by the Department of Commerce of Sri Lanka, began on 10th February and concluded on 12th.

Industry and Commerce Secretary TMKB Thennakoon led the Sri Lankan delegation joined by Ambassador of Sri Lanka to the Russian Federation HE Dr. Saman Weerasinghe, and Director General of Commerce Sonali Wijeratne.The Russian side was led by Deputy Minister of Agriculture of the Russian Federation and the Head of the Federal Agency for Fishery, Ilya Shestakov, HE Ambassador of the Russian Federation to Sri Lanka Alexander A Karchava.

“The launch of the Intergovernmental Commission mechanism between Sri Lanka and Russia will improve the efficiency of bilateral trade-economic and scientific-technical cooperation due its systemic outlook. We like more fishery products as well as fruits and vegetables from Sri Lanka. Sri Lankan fruits and vegetables are no threat to Russian farmers” said Minister Shestakov.

Egypt has become a leading supplier of fruits and vegetables to Russia.

The talks spanned a wide array of relevant topics-trade, investment, education, industry, customs, technical and science-with Russian side showing an extra interest in agricultural cooperation. During the bilateral talks, Mr. Ilya Shestakov, Deputy Minister of Agriculture of the Russian Federation and the Head of the Federal Agency for Fishery stressed the importance of establishing a joint working group on agriculture sphere to further develop the bilateral relations between the countries. Shestakov also expressed Russia’s interest to buy more seasonal fruits and vegetables and fishery products from Sri Lanka adding Russian cereals could be attractive to the Lankan market. Sources said that the official process for draft agreements for cooperation in the fields of science, technology, innovation and customs –called by Sri Lankan side-have also taken off at the Moscow sessions.

According to Russian Federal Customs data, bilateral trade between Sri Lanka and Russia in 2015 stood at $437 Mn. According to the Department of Commerce of Sri Lanka, total trade between Sri Lanka and Russia has been growing significantly since the disintegration of the former Soviet Union in 1991. Sri Lanka exports to Russia in the first nine months of 2015 stood at $ 152 Mn and imports US$ 161 Mn. Currently Sri Lanka’s major export item to Russia is tea, which accounts for nearly 85% of total exports .Other items that Sri Lanka exports to Russia are apparels, activated carbon, rubber and industrial gloves, coconut fibres, paper or paperboard labels, Mattress supports and retreated or used tires plastics. Sri Lanka’s imports from Russia shows a positive trend in past few years and major import from Russia are semi fished products of coal, iron, wheat, Fertilizers, asbestos, paper, paper board products and self-adhesive plates (Potassium Chloride).

PHOTO - Industry and Commerce Secretary TMKB Thennakoon (right) and Russian Deputy Minister of Agriculture and the Head of the Federal Agency for Fishery, Ilya Shestakov (left) exchange agreed minutes of first Sri Lanka-Russia Intergovernmental Joint Commission on Trade, Economic, Science and Technical Cooperation in Moscow on 12 February.