SL -Thai FTA to include 50% duty cut on Harmonised System classification codes

Sri Lanka and Thailand have agreed to include in the upcoming Free Trade Agreement (FTA) provisions for the simultaneous elimination of 50 percent of the cumulative duties applicable to the Harmonised System classification codes classified in the Sensitive List of the Tariff Liberalisation Programme at the beginning of the 16th year from the date of entry into force of the agreement.

Both sides have agreed to reduce the duration of the Tariff Liberalisation Programme from 18 years to 16 years.
 The decisions were made in the 9th round of negotiations which was held in Colombo from 18 to 20 December 2023.
While legal and institutional issues have been referred to working groups for legal scrutiny, the proposal presented by President Ranil Wickremesinghe to proceed in accordance with the agreement was approved by the Cabinet of Ministers this week. The Sri Lanka - Thailand FTA is set to be finalised in February. On invitation from President Wickremesinghe, Thailand Prime Minister Srettha Thavisin will visit the country to ink the agreement.
From January to October 2023, bilateral trade between Thailand and Sri Lanka was worth US$ 320.37 million. Thailand exported goods worth US$ 213.49 million, while it imported US$ 106.88 million worth goods from
Sri Lanka.