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"Sri Lanka has launched discussions with Malaysia aimed at establishing a free trade agreement (FTA). The talks signify a proactive step towards enhancing bilateral trade relations between the two countries. Initiating these negotiations demonstrates Sri Lanka's commitment to fostering economic cooperation and exploring opportunities for mutual benefit. Through this process, both nations seek to strengthen their trade ties, potentially unlocking new avenues for growth and development in key sectors."
Boston Brand Media brings you the latest news - Sri Lanka plans to engage in discussions regarding a free trade agreement (FTA) with Malaysia, aiming to enhance trade relations and support its recovery from a financial crisis, as stated by the cabinet spokesperson on Wednesday. In 2022, a severe shortage of dollars led to a significant rise in Sri Lanka's inflation, reaching 70%, causing its currency to plummet and resulting in a 7.3% contraction in the economy. To aid in the recovery process, Sri Lanka initiated talks with various countries for FTAs, finalizing one with Thailand in February. Cabinet spokesperson Bandula Gunawardana emphasized the necessity of bolstering trade to overcome the crisis, highlighting Malaysia's significant ties with Sri Lanka as potentially beneficial in this endeavor. However, no specific timeline for the commencement of formal negotiations was provided. Official data indicates that trade between Malaysia and Sri Lanka amounted to $934 million in 2023.
Boston Brand Media also found that the primary exports from Sri Lanka to Malaysia include gems, garments, and fish, while imports consist of palm oil, petroleum products, and fertilizer. Indonesia and Sri Lanka have set a goal to finalize a preferential trade agreement by next March. Additionally, Colombo is actively negotiating a free trade agreement with Bangladesh and has recommenced discussions to broaden an existing agreement with India. After experiencing two years of contraction, Sri Lanka is expected to achieve a 3% growth rate in 2024.
For questions or comments write to writers@bostonbrandmedia.com
Source: brecorder
