Sri Lanka seeks synthetic manufacturing JV with Bangladesh
Daily Star: Sri Lanka has expressed its willingness to invest in joint ventures in Bangladesh, particularly in synthetic fabric manufacturing, which holds significant potential for investors from both nations, Sri Lankan High Commissioner to Bangladesh Dharmapala Weerakkody said on Monday (17).
He made these remarks during a courtesy call on Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), at the chamber’s office in the capital, according to a press release.
Weerakkody highlighted several sectors as highly promising for joint venture investments, including healthcare, tourism, large hotels, information technology, education, and pharmaceuticals.
He pointed out that both Bangladesh and Sri Lanka are members of the South Asian Association for Regional Cooperation and have maintained a strong and friendly bilateral diplomatic relationship for many years.
He urged Bangladeshi entrepreneurs to leverage Sri Lanka’s experience and technical expertise to develop the country’s local tourism sector.
The high commissioner also said that Sri Lanka has already signed preferential trade agreements (PTAs) with several countries, and negotiations with Bangladesh are set to begin soon to further expand bilateral trade and investment.
During the meeting, DCCI President Taskeen Ahmed stated that bilateral trade between Bangladesh and Sri Lanka reached $ 134.06 million in the fiscal year 2023-24.
This marked a significant increase from the $ 93.11 million recorded in FY 2019-20, reflecting a notable annual growth rate of 9.5%, he said.
Taskeen added that a substantial number of Sri Lankan investors, particularly from the banking, textile, power, construction, and pharmaceutical sectors, have already made foreign direct investments of $ 428.56 million in Bangladesh.
He also encouraged Sri Lankan entrepreneurs to consider investing further in agriculture and food processing, the construction industry, healthcare, tourism, IT, and fast-moving consumer goods (FMCG).
Taskeen Ahmed emphasised Sri Lanka’s expertise and technical assistance in areas such as deep-sea fishing, tourism, and the shipping industry.
He also proposed that negotiations at the government level be expanded to facilitate the early signing of the proposed PTA, which would significantly enhance bilateral trade and investment.
Among others, DCCI Senior Vice President Razeev H. Chowdhury, Vice President Salem Sulaiman, and Sri Lankan High Commission in Bangladesh counsellor (commercial) Srimali Jayarathne.
OSL take:
Sri Lanka and Bangladesh enjoy strong bilateral and trade ties that are expected to be further strengthened by a preferential trade agreement (PTA). Both Sri Lanka and Bangladesh are recording steady growth in the manufacturing industry while also being engaged in bilateral trade. The talks on forming a joint venture on synthetic manufacturing is indicative of an emerging business opportunity between the two countries. Given the growth and business potential in such ventures in the manufacturing industry, Bangladeshi businesses/investors could look at similar opportunities in Sri Lanka and Sri Lankan businesses could also look at forming collaborations with Bangladeshi businesses with the aim of further expanding operations locally and regionally. With Sri Lanka’s geographical positioning in the Indian Ocean, strong trade ties with many foreign countries and the path to becoming a regional hub, Bangladeshi businesses/investors could confidently explore the growing business/investment opportunities in Sri Lanka while also looking at forming partnerships or joint ventures with local businesses. Other foreign businesses could also look at bases in Sri Lanka to engage with other counties in the region including Bangladesh using the preferential treatment enjoyed by Sri Lanka with them.
| Article Code : | VBS/AT/20250324/Z_2 |