Sri Lanka to commence negotiations with Indonesia for preferential trade deal

Cabinet nod was granted this week to initiate negotiations with Indonesia to enter into a preferential trade agreement (PTA), which will ultimately lead to a free trade agreement (FTA).

With a long term of objective of signing a FTA, President Ranil Wickremesinghe on Monday sought the approval of the Cabinet of Ministers to commence negotiations with Indonesia to enter into a PTA as the preliminary step.

“Indonesia is one of the largest economies in South East Asia. The preferential agreement will help to enhance access to our exports and it will also allow (Indonesia) to import competitively,” Cabinet Spokesperson Minister Bandula Gunawardana said.

Government Information Department noted that the government has identified Indonesia as a potentially suitable trading partner to build profitable trade relations for Sri Lanka.

The two countries in 2018 launched a joint feasibility study to commence negotiations for a FTA.  

Gunawardana noted that President Wickremesinghe has already taken measures to expedite bilateral trade negotiations with several countries including Thailand and China.

In addition, Sri Lanka has also decided to formally request the member countries of the Regional Comprehensive Economic Partnership (RCEP) to join the trade pact.