Sri Lanka has preferential and free trade agreements with India, Pakistan, Iran, Egypt, Singapore and Israel. It is currently in the processing of upgrading its agreement with India to a much more comprehensive one.
Sri Lanka is also party to SAFTA, the agreement on a South Asia Free Trade Area, as well as BIMSTEC, which aims to hammer out a regional FTA.
last update: May 2012
Photo: Sri Lankan engineers’ association
In a major development, Colombo has agreed to work out a permanent solution to Islamabad’s fears over the import of auto parts under the Free Trade Agreement between Sri Lanka and Pakistan. There are reports that India is going to invest in the auto sector in Sri Lanka under the India-Sri Lanka FTA. Islamabad fears that the auto parts to be made in Sri Lanka by India would be exported to Pakistan.
The Investment Promotion and Protection Agreement between Sri Lanka and Australia came into force with effect from March 14 with the completion by the Australian authorities of its domestic procedures for the entry into force of the Agreement.
Sri Lanka and India will hold another round of trade talks in Colombo next week on liberalizing professional services, investments and trade in goods.
A free trade agreement with the US will not guarantee a competitive advantage for Sri Lankan garments in the US, says a US trade law specialist.
A high level team of Indian trade officials will arrive in Sri Lanka next week to finalise the quotas for cooking oil and bakery shortening exported from Sri Lanka to India, says the Secretary to the Sri Lankan Ministry of Trade, R.M.K. Rathnayaka.
Sri Lanka has mooted a free trade agreement (FTA) with Bangladesh citing its positive experience with the ones it has signed with India and Pakistan.
All Sri Lankan factories producing Vanaspati oil have shut down, after controversial Indian regulations to restrict duty free exports of the vegetable oil to India.
Singapore is keen on entering into an FTA with Sri Lanka, Minister of Enterprise Development and Investment Promotion Rohitha Bogollagama said on Wednesday.
Indian government has agreed to provide a 70% tax concession for 2,802 goods exported from Sri Lanka to India, says Minister of Trade, Commerce, Consumer Affairs and Marketing Development Jeyaraj Fernandopulle, appraising the Indo-Sri Lanka Free Trade Agreement as a success to Sri Lanka.
By having preferential access to the two major markets in South Asia - India and Pakistan - Sri Lanka can now position itself as the conduit for Indo-Pakistan trade that has diminished due to political problems centred around the Most Favoured Nation treatment.