Sri Lanka pursues PTA with Thailand, Indonesia says Lankan envoy
Daily Mirror: Sri Lanka is making significant strides in strengthening its economic ties within the South Asian region, with a focus on finalizing Preferential Trade Agreements (PTAs) with Thailand and Indonesia, Sri Lankan Ambassador to Indonesia and ASEAN, Admiral (Prof.) Jayanath Colombage said.
He emphasised the strategic importance of these agreements during a recent meeting with a group of journalists and dignitaries at the Sri Lankan Embassy in Jakarta.
Admiral Colombage highlighted that Sri Lanka has historically focused on markets in the USA and Europe, often neglecting the potential within the South Asian region.
“We have now shifted our focus and are currently working diligently to finalise PTAs with Thailand and Indonesia,” he said and added that this move is part of Sri Lanka’s broader strategy ‘Look East’ to integrate more deeply into regional economic frameworks and bolster trade partnerships.
“Indonesia, with its close ties to Sri Lanka, plays a pivotal role in this new economic strategy. It is crucial for a country like Sri Lanka, which is recovering from an economic crisis, to engage with a rapidly developing nation like Indonesia,” Colombage said.
Indonesia’s significant population of 240 million and its goal to become a developed country by 2045 present substantial opportunities for bilateral trade and investment, he said.
He made these remarks during a dinner hosted at the Sri Lankan Embassy in Jakarta. Ambassador Colombage reiterated the importance of learning from Indonesia’s business practices and investment strategies. The event was attended by officials from the Indonesian Embassy in Colombo and members of the Sri Lankan business community.
Beyond trade, Colombage said tourism is a key area for development.
“A large number of tourists have visited Sri Lanka this year, and we are seeing an increasing number of tourists from Indonesia as well,” he added.
OSL take:
Sri Lanka’s target of becoming a regional hub has resulted in the country launching an aggressive programme to expand its trade ties with other countries. It is in such a backdrop that Sri Lanka is looking at forming PTAs with Thailand and Indonesia. Sri Lanka entered into a free trade agreement (FTA) with Thailand earlier in the year as well. Given the growing trade ties and the country’s strategic positioning in the Indian Ocean, Sri Lanka is fast becoming a trading hub in the South Asian region. Sri Lanka also enjoys strong trade ties with India and Pakistan as well. Foreign businesses/investors could therefore explore the growing business potential in Sri Lanka’s trade sector and set up base in Sri Lanka to engage with other countries in the Asian region using the preferential treatment enjoyed by Sri Lanka. Foreign businesses could also look at forming collaborations with local businesses engaged in trade with the aim of further expansion.