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Sri Lanka is set to commence negotiations with Malaysia to establish a free trade agreement. This initiative aims to strengthen economic relations and enhance trade between the two countries. The discussions are expected to focus on reducing tariffs, improving market access, and fostering bilateral investment opportunities. Both nations anticipate that the agreement will provide significant benefits to their economies, promoting growth and collaboration in various sectors.
Boston Brand Media brings you the latest news - Sri Lanka will initiate discussions on a free trade agreement with Malaysia in an effort to enhance trade relations and aid in its recovery from a financial crisis, the cabinet spokesperson announced on Wednesday.
A severe shortage of dollars in 2022 led to Sri Lanka's inflation skyrocketing to 70%, caused a steep decline in its currency, and resulted in a 7.3% economic contraction.
To aid recovery, Sri Lanka began negotiations with several countries for free trade agreements, signing one with Thailand in February.
"We need to strengthen trade to emerge from this crisis, and Malaysia's strong ties with Sri Lanka will help in this process," said cabinet spokesperson Bandula Gunawardana.
He did not specify when formal negotiations would commence.
Trade between Malaysia and Sri Lanka was valued at $934 million in 2023, according to official data.
Boston Brand Media also found that, Sri Lanka exports primarily gems, garments, and fish to Malaysia, while importing palm oil, petroleum products, and fertilizer.
Indonesia and Sri Lanka plan to sign a preferential trade agreement next March.
Colombo is also negotiating a free trade agreement with Bangladesh and has resumed discussions to expand an existing agreement with India.
The South Asian island nation is expected to achieve 3% growth in 2024 following two years of economic contraction.
For questions or comments write to writers@bostonbrandmedia.com
Source: brecorder
