2020

ARMENIA
MARKET AND COUNTRY
BRIEF

PREPARED BY

MARKET DEVELOPMENT DIVISION

Sri Lanka Export Development Board
2021
 Armenia COUNTRY REPORT 2

Contents

1. Armenia Trade Overview

2. Bilateral trade between Sri Lanka and Armenia

2.1 Top 10 Sri Lanka Exports to Armenia

2.2 Top 10 Sri Lanka Imports from Armenia

3. Potential Products and New products from Sri Lanka to Armenia

4. Propose Activities/programs
 Armenia COUNTRY REPORT 3

1. Trade Overview-Armenia

Under the old Soviet central planning system, Armenia developed a modern industrial sector,
supplying machine tools, textiles, and other manufactured goods to sister republics, in
exchange for raw materials and energy. Armenia has since switched to small-scale agriculture
and away from the large agro industrial complexes of the Soviet era. Armenia has only two
open trade borders - Iran and Georgia - because its borders with Azerbaijan and Turkey have
been closed since 1991 and 1993, respectively, as a result of Armenia's ongoing conflict with
Azerbaijan over the separatist Nagorno-Karabakh region.

Armenia joined the World Trade Organization in January 2003. The government has made
some improvements in tax and customs administration in recent years, but anti-corruption
measures have been largely ineffective. Armenia will need to pursue additional economic
reforms and strengthen the rule of law in order to raise its economic growth and improve
economic competitiveness and employment opportunities, especially given its economic
isolation from Turkey and Azerbaijan.

Armenia's geographic isolation, a narrow export base, and pervasive monopolies in important
business sectors have made it particularly vulnerable to volatility in the global commodity
markets and the economic challenges in Russia. Armenia is particularly dependent on
Russian commercial and governmental support, as most key Armenian infrastructure is
Russian-owned and/or managed, especially in the energy sector. Remittances from
expatriates working in Russia are equivalent to about 12-14% of GDP. Armenia joined the
Russia-led Eurasian Economic Union in January 2015, but has remained interested in
pursuing closer ties with the EU as well, signing a Comprehensive and Enhanced Partnership
Agreement with the EU in November 2017. Armenia’s rising government debt is leading
Yerevan to tighten its fiscal policies – the amount is approaching the debt to GDP ratio
threshold set by national legislation

Source: CIA World’s fact book

 Armenia COUNTRY REPORT 4

2. Bilateral trade between Sri Lanka and Armenia

Values in US Dollars

Year Export Import Trade balance

2016 1,379,807 684 1,379,123

2017 760,756 - -

2018 844,607 174 844,433

2019 448,458 4,664 443,794

2020 1,042,147 3,810 1,038,337

Bilateral trade between Sri Lanka and Armenia

1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
-
2016 2017 2018 2019 2020

Export Import Trade balance

Source: Trade Map and Sri Lanka Customs

Armenia Sri Lanka’s (2020)

 122nd export destination with USD 1.04 Mn
 165th import destination.

Sri Lanka Export to Armenia

2020 Average growth rate (With

compared to 2019)

84.32%

2016-2020 Average growth rate –

10.90%.
 Armenia COUNTRY REPORT 5

2.1 Top 10 Sri Lanka Exports to Armenia (2018-2020)

Values in US Dollars

No Description 2018 2019 2020

330,92
1 Coco Peat, Fiber Pith & Moulded products 62,479 627,245
5
379,88 273,87
2 Tea Packets 375,886
8 0
3 Coconut Husk Chips - - 11,429
4 Frozen Fish 55,048 66,791 8,478
5 Mattresses & Mattress Supporters - - 5,871
6 Rubber Plates, Sheets Rods of Vulcanized - - 5,260
7 Gems 54,450 35,083 3,675
8 Tea in Bulk 301 - 1,931
9 Ornamental Fish 938 1,127 1,221
Perfumes, Cosmetics, Shampoos & Makeup
10 - 1,749 825
Preparations
  Other Products 23,056 7,360 326
844,60 448,45 1,042,14
  Total :
7 8 7

2.2 Sri Lanka Imports from Armenia (2018-2020)

Values in US Dollars

No Product 2016 2017 2018 2019 2020

1 Other Electrical & Electronic Products         3,466
Tea Bagging, Packing, Cleaning, Weighing
2         336
Machines
3 Tea Packets         8
4 Processed Food       4,664  
5 Pneumatic & Retreated Rubber Tyres & Tubes     119    
6 Alcoholic Beverages 48   54    
7 Processed Vegetables, Fruits & Juices 622        
8 Live Animals 14        
  Total : 684 - 174 4,664 3,810
Source: Sri Lanka Customs
 Armenia COUNTRY REPORT 6

3. Potential Products and New products from Sri Lanka to Armenia

ARMENIA
POTENTIAL PRODUCTS NEW PRODUCTS
Sectors HS Product TP Sectors Hs Product TP
Code Code
Coconut Food '210690 Food preparations 15.3 Diamonds '710239 Diamonds 108.6
Products (jewellery)
worked but
not mounted
or set
Pneumatic & '401180 Pneumatic tyres new of 11.3 Unmanufactur '240120 Tobacco, 55.2
Retreated Rubber rubber for bicycles ed Tobacco unmanufactur
Tyres & Tubes ed, stemmed
or stripped
Tea Bagging, '842230 Machinery to fill, close, 9.2 Animal Feed '230990 Animal feed 28.6
Packing, Cleaning, aerate, bottle, container preparations
Weighing Machines
Other Products of '392690 Plastic articles 9.1 Glass & '701090 Glass 15.9
Plastics Glassware containers for
packing or
conveyance
goods
Apparel '620342 Mens, boys trousers & 9 Toys Games & '950300 Dolls 11
shorts, of cotton, not Sport representing
knit Requisites only human
beings
Other Electrical & '843149 Parts of cranes, work- 8.7 Insulated '854449 Electric 10.2
Electronic Products trucks, shovels, constr Wires and conductors, <
machine Cables 80 volts, no
connectors
MDF Boards '441114 Fibreboard >0.8 g/cm2 7.7
not worked or surface
covered
Furniture & Seats '940350 Bedroom furniture, 7.4
wooden, nes
Gaskets, Washers, '401699 Articles of vulcanised 7.4
Seals etc. of Hard rubber, except hard
Rubber rubber
Jewellery '711319 Jewellery and parts of 7.3
precious metal except
silver
Bananas '080390 Bananas, including 7.2
plantains, fresh or
dried
Beverages '220299 Non-alcoholic 6.4
beverages, except fruit,
veg juices
Note -TP: Trade Potential
 Armenia COUNTRY REPORT 7

Potential products: Sri Lanka is currently exporting those products to Armenia. But, there is still
an untapped potential. Therefore, Sri Lanka can further promote those items to the Armenia market.
Accordingly below products have a trade potential from Sri Lanka.

 Coconut Food Products

 Pneumatic & Retreated Rubber Tyres & Tubes
 Tea Bagging, Packing, Cleaning, Weighing Machines
 Other Products of Plastics
 Apparel
 Other Electrical & Electronic Products
 MDF Boards
 Furniture & Seats
 Gaskets, Washers, Seals etc. of Hard Rubber
 Jewellery
 Bananas
 Beverages

New products: Sri Lanka is not currently exporting those items to Armenia. But, exports to the
other countries. Armenia imports those items from other countries but, not from Sri Lanka.
Therefore, those products can be identified as new products to introduce to the Armenia Market from
Sri Lanka. Accordingly below products can be identified as new products from Sri Lanka.

 Diamonds
 Unmanufactured Tobacco
 Animal Feed
 Glass & Glassware
 Toys Games & Sport Requisites
 Insulated Wires and Cables

4. Activities proposes to the Embassy of Sri Lanka in Russia to promote

Sri Lanka exports to Armenia
EDB would like to propose below activities to be initiated in collaboration with the
Embassy of Sri Lanka in Russia.

 Organize virtual B2B meeting/s with Armenian counterparts for the selected
products.
 Since, there is no import duty or VAT on precious stones, we would like to
introduce Gem and Jewellery exporters to Armenia.
 Armenia COUNTRY REPORT 8

 Organize series of webinar on “Exporting to Armenia ”

The EDB wishes to provide logistical support to arrange the webinar series. We may
discuss this further and agree on suitable webinar topics and time frame to implement
covering the following areas.

• Overview of Armenia market

• Market trends and export potential (Product/ Service)

• Custom procedures/ sectorial requirements

• Registration and regulation for exporting to Armenia

• Packaging and labeling requirements

• Distribution patterns

• Participation at online exhibitions

 Updates on market information

Continuous update of market information by Sri Lanka Missions in Russia is very

much appreciated which is helpful to decide on market promotion activities.

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