There is also a stiff increase seen in the airline development within the

There is also a stiff increase seen in the airline

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There is also a stiff increase seen in the airline development within the country accounting for more foreign investment in terms of infrastructure management. The Board of Investment (BOI) of Sri Lanka approved an estimated 354 new foreign investment projects in the country committed to an investment of 3991.6 billion in 2007 [Roh07]. According to the AFP reports Sri Lanka on a whole
attracted a whopping $600 million foreign investment of which $350 was concentrated towards the telecom sector[Roh07]. This shows that the island country of Sri Lanka is free and open to foreign trade, providing investment benefits and perks to the investors. K. Trade statistics The trade dependency ratio i.e. the ratio of sum of exports revenue to imports revenue was 66 in the year 2007. The major exports of Sri Lanka are tea, rubber and coconuts which account for 74% of the total exports in the country. Industrial exports have started to be a major contributor to export earnings with a stiff rise from 14% - 76% in ten years. The industrial exports are powered by textiles and garments industry accounting for 68% of the total exports. Transitional products dictate the Sri Lanka imports story apart from investment goods and consumer goods. Intermediate goods account for 51% of the total imports, investment goods 27% and consumer goods 21%. The increase in the import of investment goods can be accounted to the exploitations in infrastructural facilities, construction and transport sector and the use of advanced and latest technology. Overall the export estimate of Sri Lanka was $7.899 billion in 2008 and the import estimate was $12.26 billion. The exchange rate in Sri Lanka was 108.23 per US dollar in 2008. L. Trade restrictions
PENETRATION OF RURAL AND URBAN MARKETS For marketers Sri Lanka’s rural market offers a potential market, which is facing a stiff competition in urban markets. The rural market environment is totally different from the urban environment. Rural market offers a great potential market for the products and also for services because of two reasons 1. Huge number of consumers 2. In rural it is largely untapped market; in rural market they have very less penetration for many products. Sri Lanka rural markets is unique because - The wants of the rural consumers are not the same of the urban consumers, these wants are regarding to their lifestyle, environment and values. [Pra09] IMPORTS POLICIES Sri Lanka is open for foreign investment; they have a policy of tariff horizontal code, which deals with the import licensing. Sri Lanka requires import license for over 400 items and at 6-digit level of THC, mostly for their security reasons like health, environment. To receive import license importers must pay 0.1 percent of the import price. The government of Sri Lanka has followed the transaction value method to determine the CIF value and also in 2004 they have implemented WTO customs valuation agreement.

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