Sri Lanka (Commonwealth Union)_ Sri Lanka and Bangladesh are set to begin negotiations for a proposed preferential trade agreement (PTA), with a virtual introductory meeting scheduled for May 29th. Furthermore, the two countries plan to expand the PTA into a free trade agreement (FTA) in due course, but Chief FTA Negotiator K. J. Weerasinghe acknowledges that this will take time. The Sri Lankan government aims to complete the negotiations for the proposed PTA by 2023, or the first quarter of 2024.
Sri Lanka’s Chief FTA Negotiator K. J. Weerasinghe stated that the virtual meeting will serve as a preliminary meeting, with the two countries expected to finalize the dates and venue for the proposed negotiations. He said, “We are having a virtual meeting on May 29th with the Bangladeshi counterparts. It is going to be a sort of introductory meeting. The first stage is going to be a PTA, then it will eventually lead to a FTA; but it is going to take some time”.
Further, the Bangladesh Institute of Development Studies (BIDS) conducted a study that suggested that the proposed PTA could potentially enhance bilateral trade between the two countries by 25% within five years. Accordingly, the PTA is also expected to increase bilateral trade in fabric and yarn, which will benefit both countries. Sri Lanka has already submitted a list of 112 products, requesting duty-free access to the Bangladeshi market, while Bangladesh has sought duty-free access to over 100 products in the Sri Lankan market under the proposed PTA.
According to Weerasinghe, Sri Lanka is still expecting responses from Indian and Chinese authorities in order to resume negotiations for the proposed China-Sri Lanka FTA and the Economic and Technology Co-operation Agreement (ETCA) with India. Further, the government intends to announce the nation’s intention to join the Regional Comprehensive Economic Partnership (RCEP) when it opens to new members on July 1 of this year. According to Weerasinghe, discussions with private sector stakeholders are proceeding in a methodical manner prior to the ratification of the proposed trade agreements.
