Sri Lanka will actively pursue the formulation of Free Trade Agreements (FTA) with several countries to boost bilateral trade, said State Minister of Foreign Affairs Tharaka Balasuriya.
In an interview with Sunday Observer Business he said that in addition to the FTA with Bangladesh, which had made some progress, the Government is also looking at formulating FTAs with China and Singapore as well.
Talks regarding the Bangladesh FTA commenced some time ago and both Governments have already exchanged request lists of products. Bangladesh earlier also presented a list of over 100 products while Sri Lanka too is seeking duty-free access for several items. The Commerce Ministry of Bangladesh has set up a high-powered trade negotiation committee (TNC) to take steps in this regard.
The Minister said that when it comes to Preferential Trade Agreements (PTA) and FTAs the Government is giving priority to “high growth countries” such as Bangladesh and Singapore where Sri Lanka could have a trade balance in its favour.
Total trade between Bangladesh and Sri Lanka in 2020 (pre C-19 era) was USD 200 million and Bangladesh was the 21st largest export destination for Sri Lanka in 2020 with an export value of USD 153.44 million.
“This is the reason we are keen to formulate an FTA with Bangladesh FTA soon,” he said.
Bangladesh’s first PTA was signed with Bhutan on December 6, 2020, a first of its kind since the country’s Independence in 1971.
Asked on the progress of the China-Sri Lanka FTA, he said that this too is being worked out. “However, we see more imports from China coming to Sri Lanka and we must find a way to have some pre-conditions in this regard. While Sri Lanka’s exports to China was around USD 500 million, imports in recent times was more than triple this amount. Hence Sri Lankan exporters should also look at increasing exports to China in a more aggressive manner.”
The Minister said that they are also keen to expedite the FTA with Singapore as well.
Balasuriya said that with the Sri Lanka import ban they must revisit the Sri Lanka-India FTA and look at making improvements to it.
The Minister said that Sri Lanka’s export and local travel companies should also look at a better international relationship with Sri Lanka’s embassies as they are ready to help to increase exports and also inbound tourism.