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Wednesday, 24 April 2013 00:00 - - {{hitsCtrl.values.hits}}
As Sri Lanka-Bangladesh bilateral trade surged by 73%, the South Asian economy is bullish on Sri Lanka’s growth prospects and apart from trade, wants to boost its investment levels too. “We are extremely optimistic on Sri Lanka prospects. Bangladesh is, in principle, agrees to start discussions and explore on all possibilities to strengthen trade with Sri Lanka, including a free trade agreement.
“We believe that bilateral tariffs are very high. If an FTA with Sri Lanka is finalised, it will be Bangladesh’ first ever FTA with any country. A joint working 
group on trade is now in order,” the visiting Bangladesh Foreign Secretary Ambassador to Sri Lanka Mohammed Shahidul Haque said recently.
Shahidul Haque, who is leading a six member delegation to Sri Lanka, was addressing Minister of Industry and Commerce Rishad Bathiudeen, and his top officials yesterday, at the Ministry of Industry and Commerce Colombo 3, during his courtesy call on Minister Bathiudeen.
Also present during the session were Secretary Ministry of Industry and Commerce Anura Siriwardena, Bangladesh High Commissioner to Sri Lanka accompanying Haque, Mohammad Sufiur Rahman, Department of Commerce DG P.D. Fernando, top officials of the Department of Commerce of Sri Lanka and members of Haque’s delegation.
According to the Department of Commerce of Sri Lanka, bilateral trade between Sri Lanka and Bangladesh has seen ‘improvements during the last four to five years’. The total bilateral trade which was at US$ 48.14 million in 2010 has jumped by a strong 73% in 2012 to US$ 83.19 million, showing a rapid rise in business between the two historically friendly nations.
In 2012, among the top Lankan exports to Bangladesh were Fabrics (47% of exports-consisting of cotton, knitted or crocheted fabrics), enzymes (11%), petroleum oils and oils obtained from bituminous minerals other than crude (7%), and narrow woven fabrics, among others.
“The US$ 83 million bilateral trade volume indicates strong and unrealised trade potential between both countries” Minister Bathiudeen said. “We thank Bangladesh for supporting Sri Lanka in various efforts, including on human rights. We too are looking forward to an FTA with Bangladesh, perhaps starting with a Preferential Trade Agreement (PTA).
“To this end, a joint working group on trade by both countries can speed up the process as suggested. We also invite Bangladesh State and private sector investors to Sri Lanka. More than US$ 292 million of Sri Lankan investments by 45 Lankan companies are now in Bangladesh but Bangladeshi investments in Sri Lanka are comparatively low,” Bathiudeen revealed.
Currently, 15,000 Sri Lankans are employed in Bangladesh and 45 Sri Lankan firms have invested US$ 292 million in the country in various ventures while Bangladeshi investments in Sri Lanka (both BoI and non-BoI) is a low US$ 3 million (only in six projects) due to restrictions on capital and current investment outflows by Bangladeshi side, which in turn has limited the full potential of mutual investment development and protection capacity for both countries.
Minister Bathiudeen stressed that: “Specially we invite committed Bangladeshi investors to our pharmaceutical manufacturing sector. We can arrange buyback agreements for promising, technology know-how generating and/or very low cost Bangladeshi manufacturers in this regard.”
Secretary Siriwardena said: “In 2012, Sri Lanka imported US$ 5.58 million medicaments (Pharmaceutical products) from Bangladesh, which claimed 22% of Y’12 imports from Bangladesh. Bangladesh’s strong Pharmaceutical sector exports, which started only a few years ago to 83 countries including the US and Europe, and even makes high end fourth generation antibiotics.
Still, the Bangladeshi domestic pharmaceutical market is 18 times higher than country’s export volumes. “We encourage Bangladeshi firms to invest in our pharmaceutical sector individually or as joint ventures.”
Haque mentioned that: “Bangladeshi State sector pharmaceutical manufacturing is weak with limited capacity. Therefore we are looking at a hybrid, Public Private pharmaceutical investment model in Sri Lanka and we are planning to send such a mixed team to Sri Lanka in the due course to explore pharmaceutical JV here. The team will consist of our state health sector officials and our private sector investors.”
He also added that: “We are also very keen on expanding connectivity between Sri Lanka and Bangladesh. Commercial maritime connectivity should be established as a direct link for us to move forward in bilateral trade. Sri Lanka should also be made a party in our triangle connectivity discussions. We are highly impressed with the progress of Colombo Port expansion project too.”
