In my earlier post “Indian Stock Market – Both Sides”, I had written about how Indian companies are venturing into Sri Lanka and doing well. This seems to be picking pace now.
One of the good examples is in Dairy. Last time I visited Sri Lanka and happen to buy Milk/Yoghurt, I was surprised to see only Nestle (from Europe) and New Zealand Dairy products. India with its huge Dairy capacity and proximity to Sri Lanka doesn’t have any of its dairy products in Sri Lankan stores. All this is going to change, with Indian Dairy Giant Mr.Kurian’s Amul setting up soon its operations in Sri Lanka. Initially they will source the products from India, but sooner Amul is planning to setup a complete Co-operative chain in the models of Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) and transfer control to Sri Lankans.
On the other side, Sri Lankans are also expanding to India. One example, is Sri Lanka’s famous Maliban Biscuits coming into India in a big way. Another example is seen in Chennai’s biggest Mall (Spencer Plaza), in the new 3rd phase, Sri Lanka Export Development Board has setup “Sri Lanka Trade Centre – Chennai” with several participating Sri Lankan’s speciality stores including Confectionaries, Flowers, Toys, FootWear and more.
All these are still tip of the iceberg, I am sure in the next few years there is going to be a windfall in the bilateral trade between the two countries.