Sri Lanka and Indonesia sign three MoUs to promote bilateral relations and discuss future FTA
The government of Sri Lanka and Indonesia have signed three MoUs in the fields of Search and Rescue (SAR); Higher Education, Research and Technology; and, Cooperation against Trafficking in Narcotic Drugs, Psychotropic Substances and their Chemical Precursors.
The signing of the agreements took place during the official visit of Indonesia President Joko Widodo to Sri Lanka last week.
Widodo during his meeting with Sri Lanka’s President Maithripala Sirisena has exchanged views on the progress and challenges in the bilateral cooperation and agreed to enhance cooperation for the mutual benefit.
Indonesia has also pledged to contribute towards Sri Lanka’s development, particularly in infrastructure and connectivity.
Both Sirisena and Widodo have reportedly acknowledged the need to harness the untapped potential, which exists in the bilateral economic sphere and emphasised the need for the early establishment of the Joint Working Group on Trade and Investment.
The two leaders have also agreed that a joint feasibility study should be undertaken for a possible comprehensive bilateral free trade agreement (FTA).
They have also recognised the importance of regional cooperation and integration in Asia.
President Widodo has also encouraged Sri Lanka to enhance its engagements with ASEAN and the ASEAN Regional Forum.
OSL take:
The signing of three MoUs between Sri Lanka and Indonesia as well as the holding of a feasibility study on a FTA between the two countries would strengthen the bilateral and trade cooperation between the two countries. Investors looking at entering Indonesia could use the advantageous position of Sri Lanka and use the island nation as the home base to enter the Indonesian market.
| Article Code : | VBS/AT/20180129/Z_3 |