Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 07COLOMBO375, SRI LANKA: 2006 U.S. EXPORTS UP, BUT BARELY DENT USD 1.9B

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07COLOMBO375.
Reference ID Created Released Classification Origin
07COLOMBO375 2007-03-06 12:22 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Colombo
VZCZCXRO6857
RR RUEHLMC
DE RUEHLM #0375/01 0651222
ZNR UUUUU ZZH
R 061222Z MAR 07
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC 5589
INFO RUCPDOC/USDOC WASHDC
RUEHNE/AMEMBASSY NEW DELHI 0714
RUEHKA/AMEMBASSY DHAKA 9940
RUEHIL/AMEMBASSY ISLAMABAD 6906
RUEHKT/AMEMBASSY KATHMANDU 4978
RUEHKP/AMCONSUL KARACHI 2153
RUEHCG/AMCONSUL CHENNAI 7478
RUEHGV/USMISSION GENEVA 1865
RUEATRS/DEPT OF TREASURY WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION
UNCLAS SECTION 01 OF 02 COLOMBO 000375 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR SCA/INS AND EB/TPP 
 
STATE AND GENEVA PLEASE PASS TO USTR 
 
MCC FOR S GROFF, D NASSIRY AND E BURKE 
 
E.O 12958: N/A 
TAGS: ECON ETRD EFIN EAID CE
SUBJECT:  SRI LANKA: 2006 U.S. EXPORTS UP, BUT BARELY DENT USD 1.9B 
BILATERAL TRADE DEFICIT 
 
REF: COLOMBO 370 
 
1. (U) Summary:  The United States-Sri Lanka goods trade balance 
narrowed to nine-to-one in Sri Lanka's favor in 2006, from over 
ten-to-one in recent years.  The improvement came from 20 percent 
growth in U.S. exports to Sri Lanka, while U.S. imports from Sri 
Lanka rose by only 3 percent.  Nevertheless, the U.S.-Sri Lanka 
trade deficit for 2006 remained around $1.9 billion, unchanged from 
2005.  Sri Lanka is likely to continue to run a heavy trade surplus 
with the United States as it maintains high tariffs and para-tariffs 
on imports (reftel), while steadily producing U.S.-bound garments. 
For Sri Lanka overall, export growth of 8.4 percent was overshadowed 
by a 16 percent jump in imports and a decline in its balance of 
payments surplus.  End Summary. 
 
U.S. EXPORTS UP, BUT TRADE DEFICIT STEADY AT $1.9B 
--------------------------------------------- ----- 
 
2. (U) According to U.S. Department of Commerce statistics, the 
United States ran a $1.9 billion trade deficit with Sri Lanka in 
2006, unchanged from 2005.  U.S. exports to Sri Lanka increased by 
20 percent in 2006 to $237 million.  Major U.S. exports in 2006 were 
machinery ($94 million), electrical machinery and parts ($32 
million), yarn and fabric ($22 million), medical equipment ($10 
million), paper ($7 million), and computers and related equipment 
($6 million). 
 
3. (U) Sri Lanka's exports to the United States, its largest market, 
increased by 3 percent to $2.1 billion, or nearly a third of total 
exports.  Apparel continued to dominate U.S.-bound exports, but grew 
by only 2 percent to $1.7 billion.  Other key exports from Sri Lanka 
to the United States were, in order, rubber, gems, tea, and spices. 
 
 
SRI LANKA'S EXPORTS TO THE EU SURGED 
----------------------------------- 
 
4. (SBU) Exports to the European Union (EU), Sri Lanka's second 
largest apparel market, grew by 26 percent to $1.3 billion in the 
first eleven months of 2006.  Exports to the EU were boosted by duty 
free access under the EU's Generalised System of Preferences Plus 
(GSP+) scheme.  Under GSP+, the EU grants duty free access to Sri 
Lankan exports, including garments, in recognition of Sri Lanka's 
meeting international standards in human and labor rights, 
environmental protection, counter-drugs policy, and good governance. 
 (Note: According to the EU mission in Colombo, the EU has begun to 
evaluate whether human rights violations and other governance 
problems could cause Sri Lanka to lose eligibility for GSP+ when the 
EU reviews the program in 2008.) 
 
SRI LANKA'S EXPORT GROWTH SLOWS OVERALL, EXCEPT FOR 
GARMENTS AND EMERGING SECTORS 
--------------------------------------------- ------ 
 
5. (U) Sri Lanka's total exports were $6.9 billion in 2006.  Export 
growth slowed to 8.4 percent in 2006 from 10.2 percent in 2005. 
Growth in apparel, Sri Lanka's key export, accelerated to 6.4 
percent in 2006 from 3.1 percent in 2005.  Apparel, at $3.1 billion, 
accounted for 45 percent of all Sri Lanka's exports.  Despite having 
had a good year, garment exporters are worried, fearing that the 
2008 expiration of U.S. safeguards against Chinese apparel will cut 
their sales dramatically. 
 
6. (U) Aside from garments, there were positive signs of 
diversification of Sri Lanka's industrial export base.  Food and 
rubber product exports grew by 10 percent to $2.1 billion, 
accounting for 30 percent of exports.  Agricultural exports, led by 
tea (which had record high exports), increased by 12 percent to $1.3 
billion, or 19 percent of Sri Lanka's exports. 
 
IMPORT GROWTH EXCEEDS EXPORT GROWTH 
----------------------------------- 
 
7. (U) Sri Lanka's island economy is importing more and more, both 
 
COLOMBO 00000375  002 OF 002 
 
 
for consumption and investment.  Imports grew by 16 percent to $10.2 
billion.  The petroleum import bill rose by 25 percent to $2.1 
billion, both on higher price and higher volume.  Petroleum products 
accounted for 20.2 percent of total imports.  Consumer goods 
imports, mostly food staples like sugar and milk products, grew by 
23 percent.  Imports of investment goods such as building material, 
machinery, and transport equipment, rose by 24 percent to $2.2 
billion in 2006.  Imports of intermediate goods (excluding oil), 
such as textiles and other industrial inputs, increased by 8 
percent, to a total of $4.1 billion. 
 
8. (U) The Indo-Lanka Free Trade Agreement (ILFTA) was a significant 
factor in the jump in imports.  The 2000 agreement has produced a 
four fold increase in total bilateral trade between the two 
countries, with Sri Lanka's exports rising eight-fold.  However, in 
2006, Sri Lanka's exports to India actually dropped by 14 percent to 
$483 million as India imposed quotas on palm oil and pepper 
following complaints by Indian producers.  These joined existing 
Indian quotas, tariffs and restrictions on ports of entry on 
garments and tea, demonstrating how far from "free trade" the two 
neighbors remain despite the ILFTA.  Although Sri Lanka likewise 
maintains a 1,100 item negative list, protecting major production 
sectors including numerous agricultural products, its imports from 
India grew on the order of 25 percent in 2006. 
 
TRADE DEFICIT INCREASES 34 PERCENT, BUT BOP REMAINS IN SURPLUS; SRI 
LANKAN RUPEE DEPRECIATES 
--------------------------------------------- ---------- 
 
9. (U) With these patterns, Sri Lanka's trade deficit rose 34 
percent to $3.4 billion in 2006.  The deficit was partly offset by 
higher worker remittances, which increased by 21 percent to $2.3 
billion.  Government borrowing in international markets also 
increased, to $1.1 billion from 120 million in 2005.  The balance of 
payments recorded a surplus of around $190 million in 2006 compared 
with a surplus of $500 million in 2005.  Total external reserves 
fell by 6 percent to $3.6 billion, sufficient to finance 4.2 months 
of imports.  Despite Central Bank efforts to prop up the Sri Lankan 
Rupee, the currency depreciated by 5.2 percent against the U.S. 
Dollar and about 17 percent against the Euro. 
 
COMMENT: BILATERAL TRADE LIKELY TO REMAIN STAGNANT 
--------------------------------------------- ----- 
 
10. (U) The 20 percent increase in U.S. goods exports to Sri Lanka 
in 2006 was good news, but was not due to any liberalization by Sri 
Lanka, which has increased tariffs and para-tariffs (which UNCTAD 
defines as "measures that increase the cost of imports in a manner 
similar to tariff measures") in the last few years.  Instead the 
jump in U.S. exports was probably driven by Sri Lanka's unusually 
high 7 percent GDP growth rate in 2006 and by the stimulative effect 
of negative real interest rates for the past three years.  With the 
Central Bank raising interest rates to control inflation, growth in 
2007 may slow down. 
 
11. (U) For Sri Lanka overall, the mixed performance in 2006, with 
exports growing but imports rising even more, was mitigated by the 
huge growth in remittances.  A slowdown in the global economy could 
thus hit Sri Lanka's balance of payments doubly hard, as both 
exports and remittances would likely fall.  With external debt 
growing as the government finances domestic budget shortfalls, this 
could be problematic.