Malaysia calls for Sri Lanka FTA

Tuesday, 31 July 2018 00:00 - - {{hitsCtrl.values.hits}}

Minister of Industry and Commerce Rishad Bathiudeen meets Malaysian Minister of International Trade and Industry Y. B. Darell Leiking (second from left) in Kuala Lumpur on 25 July as High Commissioner of Sri Lanka in Malaysia A.J.M. Muzammil (right) looks on.

Malaysia has expressed strong interest in moving forward on the Free Trade Agreement (FTA) with Sri Lanka that was initially mulled in 2013.

“I welcome your interest on an FTA with Sri Lanka about which we agreed in principle. Such an agreement will boost Lanka-Malaysia trade in a great way,” said Sri Lankan Minister of Industry and Commerce Rishad Bathiudeen on 25 July in Kuala Lumpur. Minister Bathiudeen was in discussions with the Malaysian Minister of International Trade and Industry Y. B. Darell Leiking in Kuala Lumpur and was responding to Malaysian Minister Darell Leiking’s strong interest in moving forward in respect to the Free Trade Agreement between both countries that was initially entertained in 2013.

During the second session of the Joint Commission in Malaysia in October 2013 in Kuala Lumpur, both sides agreed in principle to explore the future possibility of an FTA, which would boost bilateral trade further. According to the Department of Commerce of Sri Lanka, bilateral trade between Sri Lanka and Malaysia in the five year period of 2013-17 has increased by 20% to $ 693 million. This year, January-June trade was at a strong $ 361 million. 92% of total trade in 2017 were imports from Malaysia at $ 641 million. Malaysia was the seventh largest source of imports for Sri Lanka in 2017. The main imports from Malaysia in 2017 were wood, Portland cement, plastics, petrol, synthetic rubber, and gas oil/diesel. Sri Lanka’s leading exports to Malaysia in 2017 were food preparations, meslin flour, tea and apparel.

Minister Bathiudeen explained the initial actions taken for the Sri Lanka-Malaysia Free Trade Agreement so far and added: “We understand that there are training opportunities for our SMEs to be available in Malaysia and we shall be thankful for provision of such opportunities to Lankan SMEs as well. We invite Malaysian official and private sectors to explore investment and trade potentials in Sri Lanka. Major economic reforms are being planned under our Unity Government. I welcome your interest on an FTA with Sri Lanka on which both countries agreed in principle earlier. Such an FTA will boost Lanka-Malaysia trade in a big way. I shall inform both our President and Prime Minister of your interest.”

Minister Bathiudeen was joined by Sri Lankan High Commissioner to Malaysia A.J.M. Muzammil in Kuala Lumpur, as well as officials of the Department of Commerce of Sri Lanka.