Sri Lanka is the 16th largest U.S. market for wheat, and import demand is expected to be stronger in the 1990's than in the 1980's. U.S. wheat now dominates the Sri Lankan market, primarily as a result of sales through export programs, including P.L.-480, EEP, and GSM credits. Quality plays a minor role in Sri Lanka's choice of supplier. Many suppliers satisfy Sri Lanka's specifications, and government importers focus primarily on price and favorable grant or credit terms. Cleaner wheat is unlikely to affect U.S. sales. Future privatization of Sri Lanka's domestic wheat market is unlikely to significantly affect the role of quality or U.S. competitiveness. Privatization of imports could require U.S. wheat to be competitive solely on the basis of price to hold market share.