BNN breaking - 22 January 2024
Sri Lanka and Thailand set to sign landmark free trade agreement
By Muhammad Jawad
In an anticipated economic move, Sri Lanka and Thailand are set to sign a Free Trade Agreement (FTA) on February 3rd, a strategic play expected to bolster bilateral trade to over US$ 1.5 billion. The signing ceremony will witness the presence of Thailand’s Prime Minister, Srettha Thavisin, on his visit to Sri Lanka. Thavisin is also slated to partake as a special guest in the 76th National Independence Day celebrations on February 4th, enriching the diplomatic ties between the two nations.
The FTA: A Catalyst for Economic Growth
The FTA is meticulously crafted to not just enhance trade but also to lure Thai investors to Sri Lanka. A delegation comprising of 50 pre-eminent Thai investors will accompany Prime Minister Thavisin to explore investment prospects in Sri Lanka. This move seeks to catalyze foreign direct investment, creating a conducive environment for economic growth.
Trade Benefits: A Win-Win Scenario
As part of the FTA, tax relief will be accorded on specific goods traded between the two nations. This provision is expected to fuel an increase in exports from Sri Lanka to Thailand. Key sectors likely to witness this surge include gems and jewelry, tea, and agricultural products. The tax relief is a strategic move, designed to incentivize trade and create a win-win scenario for both nations.
Reinforcing Economic Ties
The FTA is more than a mere agreement; it represents a significant stride towards fortifying economic ties and promoting joint growth and development between Sri Lanka and Thailand. It embodies the shared vision of both nations to foster a robust economic partnership, underlining their commitment to regional growth and prosperity. The agreement is set to become a cornerstone of the economic relationship between the two countries, marking a new chapter in their bilateral relations.