Malaysia expresses interest in moving forward on the Free Trade Agreement with Sri Lanka
Malaysia has reportedly stated that the country wants to move forward on the Free Trade Agreement (FTA) with Sri Lanka that was initially mooted in 2013.
“I welcome your interest on an FTA with Sri Lanka about which we agreed in principle. Such an agreement will boost Lanka-Malaysia trade in a great way,” Sri Lanka’s Minister of Industry and Commerce, Rishad Bathudeen has said in Kuala Lumpur.
Bathiudeen during a recent visit to Malaysia has met with the Malaysian Minister of International Trade and Industry Y.B. Darell Leiking (M.P.) in Kuala Lumpur.
During the meeting, the Malaysian Minister has expressed a strong interest in moving forward in respect of the FTA between both countries that was initially discussed in 2013.
During the Second Session of the Joint Commission in Malaysia in October 2013 in Kuala Lumpur both sides had agreed in principle to explore the future possibility of an FTA, which would boost bilateral trade further.
According to the Department of Commerce of Sri Lanka, bilateral trade between Sri Lanka and Malaysia in the five year period of 2013-2017 has increased by 20% to US$ 693 million.
This year January-June trade was at a strong US$ 361 million 92% of total trade in 2017 were imports from Malaysia at US$ 641 million. Malaysia was the seventh largest source of imports of Sri Lanka in 2017. Main imports from Malaysia (in 2017) were wood, portland cement, plastics, petrol, synthetic rubber, and Gas oil/Diesel. Sri Lanka’s leading exports to Malaysia (2017) were food preparations, meslin flour, tea and apparel.
Bathiudeen has reportedly explained the initial actions taken on Sri Lanka-Malaysia FTA so far.
He has said, “We understand that there are training opportunities for our SMEs to be available in Malaysia and we shall be thankful for provision of such opportunities to Lankan SMEs as well. We invite Malaysian official and private sectors to explore investment and trade potentials in Sri Lanka. Major economic reforms are planned under our unity government. I welcome your interest on an FTA with Sri Lanka about which both countries agreed in principle earlier. Such an FTA will boost Lanka-Malaysia trade in a big way. I welcome your interest on an FTA with Sri Lanka about which we agreed in principle. Such an agreement will boost Lanka-Malaysia trade in a great way. I shall inform both our HE President and Hon Prime Minister of your interest.”
OSL take:
Sri Lanka enjoys the benefit of many FTAs with several key global markets. The latest FTA to be added to the list was the one between Sri Lanka and Singapore. Now with Malaysia also expressing interest in finalizing an FTA with Sri Lanka and another discussion ongoing with Thailand to reach a trade agreement, Sri Lanka will further benefit in international trade. Sri Lanka therefore would pose the best platform to engage in trade with South Asian and South East Asian markets. Foreign companies/investors could look at setting up base in Sri Lanka to engage in trade activities in the Asian region.
| Article Code : | VBS/AT/02082018/Z_2 |