Signing of the FTA between Sri Lanka and Singapore, approval granted by the Cabinet
A bilateral free trade agreement between Sri Lanka and Singapore has been granted approval for signing by the cabinet. The free trade agreement will primarily concern the provisions regarding, goods and services, service liberalization, investments and public procurement. Submitted by the International Trade Minister Malik Samarawickrama, cabinet granted approval subject to the clearance of the attorney general.
The approval comes in the midst of a visit by Singapore Prime Minister Lee Hsien Loong, who is expected to arrive in Sri Lanka on 22nd of January 2018. The negotiations for the free trade agreement which first started in 2016 have undergone many rounds and appropriate amendments have been added according to the cabinet sources.
Singapore has been actively welcoming the FTA with Sri Lanka with the Singapore Trade and Industry Minister S. Iswaran stating “The potential for a good quality bilateral free trade agreement between Singapore and Sri Lanka is there. Our officials have done the studies and they feel both sides stand to benefit significantly and it will smoothen the way for our business commitments to work together.”
Singapore presently is a party to a 21 FTA’s with 32 trading partners compared to Sri Lanka’s four, although there are many discussions ongoing to significantly increase this number on Sri Lanka’s part. As benefits of the FTA with Singapore it is expected that the trade between the two countries will exceed USD 1 billion mark. Also, as Singapore has a large standing in the ASEAN region this FTA will also allow Sri Lanka a direct line of access to ASEAN markets.
OSL TAKE
The approval comes in an opportune time with the visit of the Singaporean Premiere also occurring at the same time period. This will allow Sri Lanka to secure a vital Free Trade agreement with the start of the new year providing a positive outlook for the year. Singapore is one of the leading economies of the world and its’ closer ties with Sri Lanka has the potential not just increase trade but also bring in more investors to Sri Lanka as well.
It is also expected Sri Lanka will look to engage with the Singapore on a more closer level with the development projects as well as public procurement which will revitalize both these areas within Sri Lanka.
| Article Code : | VBS/AT/20181022/Z_2 |