Sri Lanka eyes Malaysia and Korea FTAs after Thailand
The Morning: Sri Lanka is looking to commence negotiations with Malaysia and South Korea for Free Trade Agreements (FTAs) following the completion of the trade agreement with Thailand, with the vision of joining the Regional Comprehensive Economic Partnership (RCEP), International Trade Office Chief Negotiator K.J. Weerasinghe said.
Speaking at the Committee on Public Finance (COPF) recently, he said the FTA negotiations with RCEP countries, such as China, Singapore, and Thailand, should be completed prior to Sri Lanka joining the RCEP, as per the vision of the Government of Sri Lanka.
He said that the FTA with Singapore has already been signed, although there are issues in implementing it, while negotiations with Thailand and China are ongoing.
“The Thailand agreement is expected to be concluded by February next year,” he said.
Weerasinghe further said that Sri Lanka should be able to start FTA negotiations with Malaysia and South Korea, who are also RCEP members, at least following the completion of the Thailand FTA.
However, COPF Chairman Dr. Harsha de Silva said that unless Sri Lanka liberalizes the service sector, the country will not be able to get into RCEP.
Moreover, he said that the ideology must be aligned and authorities should implement advocacy among the general public to clear out the negativity surrounding FTAs.
The RCEP includes 15 countries which represent a population of 2.3 billion, 30% of the world’s population and a total gross domestic product (GDP) of around $ 38,813 billion or 30% of global GDP.
In May, The Daily Morning Business reported that Sri Lanka was to express its intention of joining the RCEP on its opening for new membership on 1 July this year.
Weerasinghe then stated: “We have not even started negotiations and we are only opening up for new membership on 1 July this year.”
In August, President Ranil Wickremesinghe revealed that Sri Lanka’s intention to join RCEP is poised to materialize following the conclusion of credit optimization initiatives. He also announced plans to initiate negotiations for the establishment of free trade agreements with corresponding ASEAN member countries.
OSL take:
Sri Lanka is in the process of reviewing and revamping the country’s existing trade ties with foreign countries while also looking at forming new trade ties with more foreign countries, especially in the South and South East Asian regions. Sri Lanka is already engaged in negotiations to finalize free trade agreements (FTAs) with several countries in the Asian region. With Sri Lanka working towards becoming an emerging business destination in the South Asian region supported by the country’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed by the country, the expanding trade ties between Sri Lanka and many foreign countries will undoubtedly make the island a lucrative business destination. Sri Lanka’s economy is already on a growth path after facing many challenges during the past few years and the expanding economic activities have also prevented a host of new business/investment opportunities. Also, Sri Lanka presents an ideal destination for foreign businesses to set up base to engage with other countries in the region using the benefits enjoyed by Sri Lanka in business and trade with other countries in the region.
| Article Code : | VBS/AT/20231006/Z_1 |