Bangkok: Creating a landmark in Sri Lanka’s economic history, the much awaited and long overdue Sri Lanka- Thailand Free Trade Agreement (FTA) would be implemented by January 1, 2025.
This would be Sri Lanka’s fourth FTA after India, Pakistan and Singapore. The island nation is in talks with China for FTA, Indonesia and Bangladesh for PTA which President Ranil Wickremesinghe has said was important to create an export-oriented economy.
Sri Lanka’s Ambassador in Thailand Wijayanthi Edirisinghe told Sunday Observer Business that the discussions of Sri Lanka-Thailand FTA commenced in 2018. “Thereafter, due to various issues, change of Governments and the Covid-19 pandemic this was delayed and after nine rounds of negotiations, the final agreement was signed in February this year when the Thai Prime Minister visited Sri Lanka.”
The agreement covers trade in goods, trade in services, investment, economic cooperation which includes 11 areas; trade and investment promotion, infrastructure, agriculture agro industry, fisheries, gems and jewellery, tourism, SMEs and MSMEs, financial cooperation, packaging industry, ICT, technical and vocational education and training.
She said that the FTA will bring numerous economic benefits for Sri Lanka to increase trade and also Investments.
“Currently there is a drop in bilateral trade between the two countries and this FTA will help to increase it. We are expecting a 10% increase of exports and services from Sri Lanka to Thailand in the first year of its implementation next year,” she said.
Edirisinghe said that Thai investors too are upbeat on the FTA as they now have the opportunity to manufacture/assemble items in Sri Lanka and re-export to Thailand and to other countries with which Sri Lanka has trade agreements enjoying duty concessions.
“Representatives of a leading Thai company, Suree Interfoods Co. Ltd, Thailand targeting this FTA visited Sri Lanka in June to explore the possibility of investing in canned coconut milk manufacture in Sri Lanka to export to the USA and the EU.
“There are similar companies interested in investing in Sri Lanka under the FTA,” she said.
Edirisinghe said that similarly Sri Lankan companies specially exporters of tea and gem and jewellery could benefit hugely from this FTA and should relook at Thailand again.
