Sri Lanka to kick off relevant negotiations for FTA with Malaysia

12 June 2024 08:44 pm Views - {{hitsCtrl.values.hits}} 3 Bookmark

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Sri Lanka will be able to further strengthen its ties with Malaysia, with the Cabinet of Ministers this week giving the nod to commence the negotiations for a free trade agreement (FTA) between the two countries.

The proposal for the FTA was presented to the Cabinet by President Ranil Wickremesinghe.

The approval was granted with the Cabinet recognising the importance of export-oriented foreign direct investments, diversification of exports and expansion of market access for goods and services, to regain economic stability in the country.

Malaysia is the 34th export destination and fifth import origin for Sri Lanka, according to the Export Development Board (EDB).

Total exports to the country in 2023 were valued at US $ 58.34 million, while imports totalled US $ 736.39 million.

Moreover, exports to Malaysia increased 11.51 percent year-on-year, according to the EDB.

The main export products include petroleum oils, tea, textile, garments and industrial gloves.

Malaysia is also a key member of the Association of Southeast Asian Nations and Regional Comprehensive Economic Partnership, which signifies its status as a strong and strategic economy. (NR)

Comments - 3

Rathnavali Wednesday, 12 June 2024 09:37 PM

At a seminar held recently at the OPA on Free Trade Agreements, it was brought to light that concerns of local stakeholders such as the private sector, professionals, etc., have not been adequately addressed in the past when excuting FTAs. Furthermore, for Sri Lanka to benefit the export sector should be given necessary encouragement such facilities, training, tax concessions so that they can bring in the expected benefits to Sri Lanka through the export of high quality products to the FTA counterpart country. Otherwise, the foreign country will benefit through such FTAs resulting in higher percentage of imports into Sri Lanka and thereby draining our foreign exchange reserves. It was noted that the status that prevails at ground level is not communicated adequately to the decision makers in the government before embarking on FTAs.

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Damith wickramanayake Thursday, 13 June 2024 08:31 AM

Well said. 100% agreed

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jay Thursday, 13 June 2024 06:08 AM

Great move thanks Mr Ranil.

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