Indonesian Minister calls for initial talks for FTA with Sri Lanka

By Chathuri Dissanayake

Optimistic on improving trade relations between the two countries, Indonesian Coordinating Minister of Economic Affairs Darmin Nasution yesterday called for a Free Trade Agreement to enhance economic ties.

Nasution, part of the delegation accompanying Indonesian President Joko Widodo, who is on a three day visit to Sri Lanka, called for a joint feasibility study to understand the potential for the FTA.

Speaking at the Sri Lanka-Indonesia Business Forum held at the Shangri-La Hotel, he highlighted that over the years the Indonesia–Sri Lanka bi-lateral trade has been steadily improving with a 12% increase recorded from 2016 to 2017.

“We very much appreciate the investments by Sri Lankan investors which have also increased from 2016 to 2017 and encourage greater investments in the future. This data does not reflect the true potential of our economic cooperation,” he said.

Indonesia views Sri Lanka as a potential economic partner in trade and investment, Nasution said, urging increased trade cooperation. There is also potential for cooperation in industrial sector to the cross regional Indonesian scheme of Tobacco and fabrics as well as investments in infrastructure.

The country with one of the most politically stable and dynamic economies, Indonesia is also a production hub, a market and a hub to enter ASEAN market for Sri Lankan investors, the Coordinating Minister pointed out, inviting more engagement.

Pic by Indraratne Balasuriya

Export development Strategy to be unveiled next month

The long awaited National Export Strategy will be launched in February, followed by the National Innovations and Entrepreneurs strategy, Development Strategies and International Trade Minister Malik Samarawickrama said yesterday.

The National Export strategy, aimed at improving competitiveness and diversifying the export portfolio of the country, targets building more high quality export brands from the country, Samarawickrama said, speaking at the Sri Lanka-Indonesia Business forum.

“The strategy is to build more and more export brands from Sri Lanka, ranging from high-quality high-value food and beverages, leisure boats, IT services and electronic components. The new National Innovation Entrepreneur strategy will also be launched very soon. It will have a component to support technology, upgrading start-ups and collaborative innovations. We are fully aware without focus on these areas, we cannot go from-middle income to high-income,” Samarawickrama said. Stressing on the policy changes that have been taking place in the country to create a conducive environment for foreign investors, Samarawickrama said that the ease of doing business will also improve next year, with the introduction of the single electronic gateway. Samarawickrama noted that with macroeconomic stability being achieved and economic reforms well under way, “Sri Lanka is ready to receive investors,” adding that the Government is now focused on focused on attracting foreign direct investors.

Calling on Indonesian investors to take the opportunity of being a relatively “early arrival” in Sri Lanka’s improving business climate with economic stability and policy reforms, Samarawickrama said that the potential for bilateral trades between two countries can be enhanced to benefit both business communities.

The Board of Investments in Sri Lanka is reorienting itself to focus on improving responsiveness to investors, he said, adding that approval and facilitation for investors have been streamlined with decisions making process being made more transparent.