Sri Lanka meets top SAARC biz decision makers tomorrow in Islamabad

Sri Lanka will be meeting the highest decision makers of SAARC Trade this Thursday for the latest round of consensus on trade aspects among the member countries.  

The Ministerial Council meeting of the South Asian Free Trade Area (SAFTA) will be held on 16th February in Islamabad, where Commerce Ministers of all member countries - Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Afghanistan and Sri Lanka – will discuss promotion of trade of goods and services within the SAARC Region. This is the sixth SAFTA Ministerial Council (SMC) meeting to be held under the SAFTA framework.

“The SMC is the highest decision-making body of SAFTA,” said Minister of Industry and Commerce Rishad Bathiudeen. A special team representing the Department of Commerce of Sri Lanka is now in Islamabad to attend the sessions. “After nearly three decades of terrorism, the Sri Lankan economy has now reached a new era where we have to have a fresh look at our potential,” announced Minister Bathiudeen, adding, “Sri Lanka’s growing economy, under the leadership of President Mahinda Rajapaksa, will stand to benefit from steps towards liberalisation of SAFTA trade just like other consumers in South Asia.”

Minister Bathiudeen will join the Ministerial Council meetings in Islamabad on 16 Thursday and lead the Sri Lanka team and the discussions.

The Sixth Meeting of SAFTA Ministerial Council in Islamabad will discuss matters relating to the administration and implementation of the SAFTA agreement and also aspects relating to trade in services under SAFTA framework. On 13 Monday, the sessions of the Ninth Meeting of the Expert Group on SAARC Agreement on Trade in Services were held. The meeting discussed the role of services of specific member countries in their trade promotion efforts within the SAARC Region.

The SAFTA Agreement was signed on 6 January 2004 during Twelfth SAARC Summit held in Islamabad, Pakistan. The Agreement entered into force on 1 January 2006, and the Trade Liberalisation Programme commenced from 1 July 2006. Total exports in 2011 under SAFTA preferential tariff schemes stood at $ 1.5 billion.

According to an Asian Development Bank (ADB) study, SAFTA trade could be strengthened to US$ 85 billion from the current level of $ 10 billion. Calculations by independent analysts in April 2010, based on data from the IMF Statistical trends of 1996-2008 indicated that Sri Lanka’s total projected exports to SAARC region will top US $ 1005.95 Mn in 2015. By 2015 total Intra-SAARC exports are expected to cross US $ 17500 million mark.

According to Dr Saman Kelegama, Executive Director of Institute of Policy Studies, SAFTA liberalisation will be of benefit to the SAARC region. “Further liberalisation under SAFTA will help regional consumers greatly, in the form of low cost products and services,” Dr. Kelegama said.

“Also, SAFTA needs to work towards liberalisation of intra-regional investment flows so that in turn, trade will be stimulated” Dr. Kelegama added.