Sri Lanka Accelerates FTA Talks with Asian Giants

COLOMBO (News 1st); Sri Lanka is prioritizing the establishment of Free Trade Agreements (FTAs) with key Asian economies, aiming to boost exports, diversify trade partnerships, and build a more resilient economic future.

Speaking at a press briefing titled “Collective Path to a Stable Country” held at the President Media Centre (PMC) today (06), Minister Sabry elaborated on the government’s plans to establish FTAs with India, Indonesia, Malaysia, Vietnam, and China by the end of 2024. 

He expressed optimism that these agreements will open up new markets for Sri Lankan businesses, contributing directly to the nation’s economic growth.

Recent FTA with Thailand Seen as a Stepping Stone

Minister Sabry highlighted the recent FTA with Thailand as a historic step towards achieving President Wickremesinghe’s vision of a stable economy. He emphasized that this agreement has already provided Sri Lanka access to a USD 2.2 billion market, representing a significant advancement.

Sri Lanka Lags Behind Regional Competitors

Sri Lanka significantly lags behind regional competitors like Vietnam and Bangladesh. This issue was highlighted by Minister Sabry, who pointed out the vast difference in export earnings. While Vietnam boasts exports of $370 billion and Bangladesh at $60 billion, Sri Lanka struggles with a mere $12-14 billion.

Minister Sabry further emphasized this disparity by comparing historical and present data. In the 1990s, exports contributed a significant 30% to Sri Lanka’s GDP, compared to a meagre 15% today. This decline reflects a missed opportunity to capitalize on the global market, unlike neighbouring countries that actively pursued Free Trade Agreements (FTAs).

Source: President's Media Division