SL’s first joint trade session with fast growing Qatar coming, Rishad also leading SL biz delegation

As a tenfold growth in Sri Lanka – Qatar bilateral trade being reported, the first ever joint trade talks between Sri Lanka and fast growing Qatar are now in the offing. “We are now interested in convening the First Joint Council meeting between Sri Lanka and Qatar under the 2012 Agreement at an early date” informed Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka. Minister Bathiudeen was informing Jasim bin Abdulaziz bin Jasim Al Thani, Minister of Business and Trade of Qatar on 22 April at the Four Seasons Hotel, Doha, during the Sri Lanka-Qatar bilateral session held on the side-lines of the 13th Ministerial Meeting of UNCTAD General Assembly Session at the Qatari National Convention Center, Doha, Qatar.

When considering Sri Lanka’s trade with the Middle East, Qatar ranks as the 15th trade partner among the Middle East countries, showing strong trade potential. ‘Doha Bank Group’, a Qatari private commercial bank, announced that as Qatar’s GDP forecast showing that it will be a leading growth driver in Gulf Co-operation Council region’s positive GDP growth for 2012.  Qatar’s predicted average GDP growth for 2012-2016 stands at 6.9%. On 15 January 2012, nine Memorandums of Understanding (MoUs) and agreements were signed between Sri Lanka and Qatar in Colombo, one of which was the Agreement on Economic, Commercial and Technical Cooperation signed by Minister Bathiudeen and Yousef Hussain Kamal, the Qatari Minister of Economy and Finance.

“Sri Lanka has already initiated necessary action to form a Joint Council to facilitate effective implementation of the Agreement.  We are now interested in convening the First Joint Council meeting between Sri Lanka and Qatar under the 2012 Agreement at an early date. I also would like to lead a business delegation to Qatar on the occasion of the Joint Council meeting” Minister Bathiudeen apprised Qatari Minister Jasim Al Thani and added. “We reiterate our January 2012 invitation to Qatari investors to partner in Sri Lanka’s new upswing. We invite you to invest in our tourism, infrastructure, construction, industry, IT/BPO and apparel sectors. We request you to explore the possibility of visiting Sri Lanka at an early date in this regard.”

Minister Bathiudeen had already concluded preparatory discussions with relevant line Ministries/agencies in mid-April 2012 for the purpose of setting up the said Joint Commission.  

Both ministers also explored the possibility of advancing the bilateral commercial interests of the two countries under the January 2012 Agreement. To facilitate the effective implementation of the provisions of this Agreement, the two parties previously agreed to establish a Joint Commission on Economic, Commercial and Technical Cooperation.

Apprising Minister Bathiudeen, Minister Jasim Al Thani said: “We would be very happy to make necessary arrangements for hosting the First Joint Council Meeting in Doha at a mutually convenient date. We also warmly welcome your business delegation during this meeting. We are really keen to start investing in Sri Lanka as we said in January 2012 in Colombo. We are looking at many Sri Lankan sectors to invest and as a result, I shall consider your invitation for me to come to Sri Lanka favourably.”  

According to the Department of Commerce of Sri Lanka, the total bilateral trade between both countries has increased to US $ 174.89 Mn in 2011 from the $16.57 Mn levels of 2002. When considering Sri Lanka’s trade with the Middle East, Qatar ranks as the 15th trade partner among the Middle East countries showing that there is still upward trade potential between the two countries.  Qatar is a growing market with higher purchasing power. Recently Sri Lanka has been able to enter in to the construction sector in Qatar. Expanding Qatari employment and labour markets show strong potential for Sri Lanka’s professional services, skilled and semi-skilled workers. In 2011, Sri Lanka’s exports to Qatar were $ 10.86 Mn with main export items to Qatar being ‘food preparations’ (16%, includes, Lankan cordials, jams, spices, Ginger Beer etc.) followed by tea, citrus fruits and vegetables. In 2011, Sri Lanka’s imports from Qatar were $ 174.89 Mn and the major imports being polymers of ethelene, minerals & chemical fertilisers, and polymers.