A multi-party meeting on enhancing bilateral trade between Sri Lanka and Bangladesh was held at the Export Development Board (EDB) recently.
It was held under the patronage of the Minister of Trade, Dr. Bandula Gunawardena and High Commissioner of Bangladesh to Sri Lanka Tareq Md Ariful Islam. Officials of companies which export goods to Bangladesh were also present.
Representatives from several Government institutions attended the meeting and issues faced by the Sri Lankan exporters when exporting to Bangladesh were taken up for discussion with the Minister of Trade and the High Commissioner.
About 30 companies representing tea, cosmetics and personal care products, textiles, electrical and electronic products, woven fabric and rubber products including tyres and chemical products have joined the meeting. Minister Gunawardena said that his ministry with the Department of Commerce and other line agencies is working on the proposed Bangladesh-Sri Lanka Preferential Trade Agreement (BS-SL PTA) to promote bilateral trade for the benefit of the citizens of both countries.
The High Commissioner of Bangladesh stressed the importance of development of trade, investment and logistic services including shipping and air transport between the two countries considering the close proximity and location advantage.
EDB Chairman Suresh de Mel said that the meeting would provide a good platform for the Sri Lankan business community to share and discuss their views and concerns with the Minister, the High Commissioner and Government authorities to increase exports to Bangladesh. Exporters who joined the meeting physically as well as via the zoom platform pointed out the importance of the Bangladesh market for their products and investments. They direct their concerns when exporting to Bangladesh to the Minister, the High Commissioner and the officials present at the meeting. Among those, the high rate of Customs Duty for Sri Lankan exports, visa matters and insufficient container ships and flights between the two countries were the main issues.
In response to the concerns raised by exporters, the options available for obtaining visas to visit Bangladesh were explained. The proposed Bangladesh-Sri Lanka Preferential Trade Agreement will be the option for receiving duty concession for the issue of higher duties when exporting to Bangladesh. The total trade between two countries last year was USD 200 mn and Bangladesh was the 21st largest export destination for Sri Lanka in 2020 with exports to the value of USD 153.44 mn.
Key export products of Sri Lanka to Bangladesh are electrical & electronic products, woven fabrics, petroleum oils, petroleum gases, textile articles, products of plastics, nails, screws, bolts & nuts of metal and paper & paper products.
Total imports from Bangladesh to Sri Lankan last year was USD 47.89 mn, an increase of 17.29% compared to 2019. Imports from Bangladesh include pharmaceutical products and apparel. Secretary, Ministry of Trade, Ms. J.M. Bhadranie Jayawardhana, Director General of the EDB, Ms. Chitranjali Dissanayake, Counsellor (Political), Bangladesh High Commission in Sri Lanka, Reyad Hossain were also present.