Sri Lanka to implement Lanka-Bangladesh Joint Committee

Sri Lanka will implement the long overdue Lanka-Bangladesh Joint Committee for Economic and Technical Cooperation. Sri Lanka will also speed up implementation of last month’s MoU between President Mahinda Rajapaksa and Prime Minister of Bangladesh Sheikh Hasina. Sri Lanka will also sign a Bilateral Investment Promotion Agreement (BIPA) with Bangladesh in due course, says Rishad Bathiudeen, Minister of Industry and Commerce.

The Minister was addressing Mahbub uz Zaman, the High Commissioner of Bangladesh to Sri Lanka recently, when he met the High Commissioner at the Export Development Board (EDB) premises in Colombo.

Under the Sri Lanka-Bangladesh Joint Committee for Economic and Technical Cooperation, the two countries have agreed to extend cooperation in the areas of small & cottage industries, air services, tourism, shipping, and cultural cooperation. The third session of the committee was held in Colombo in 1993 and the holding of the fourth session is long overdue. “We will implement the committee in due course” the Minister informed uz Zaman.  

“Sri Lankan products such as tea, coconut, edible oil, spices and confectioneries such as chocolate, biscuits, processed food items and manufactured products such as prefabricated buildings, aluminium wire, cement, yarn and plastic products are some of the potential products that could be promoted in Bangladesh. Sri Lanka can also use Bangladesh duty free access to international markets further due to its LDC status. In this regard, some Sri Lankan apparel and textile exporters have already moved to Bangladesh to obtain maximum benefit from the competitive labour costs in Bangladesh successfully. Sri Lankan companies have also invested in the services sector such as banking, hotels and hospitals in Bangladesh” Minister Bathiudeen said on Tuesday, 10 May.

Speaking about the MoU between President Mahinda Rajapaksa and Prime Minister of Bangladesh Sheikh Hasina signed in April 2011, the Minister said: “The MoU signed between our President and Prime Minister of Bangladesh is very important and helpful to enhance bilateral trade cooperation between both countries.”

“I am pleased to inform you that Bangladesh has been increasingly accepting Sri Lankan exports. Sri Lanka’s exports to Bangladesh have increased by 380% during the period 2001-2010, and as a result, the total exports now stand at US $ 35.54 million. The 2010 value alone is a result of growth of 36% compared to the value in 2009” Minister Bathiudeen said.

Sri Lanka’s major exports to Bangladesh in 2010 are dyed woven fabric of cotton, articles of plastics, narrow woven fabric, enzymes, coral and similar materials, petroleum oils and oils obtained from bituminous minerals, dye carriers, trailers and semi-trailers, printed paper or boards etc. Though Sri Lanka’s imports from Bangladesh have decreased slightly from US$14.14 mn in 2009 to US$ 12.60 mn in 2010, the general import basket continues unchanged in 2010.  The main imports are medicament 22% (2.8mn-the main import in 2010), followed by articles of apparel and clothing accessories,(1.5 mn) vegetable textile fibres (1.4 mn), plastics and articles(0.7 mn), electrical machinery and equipment(0.4 mn).

“Organising of outgoing and incoming business delegation between the two countries would be a key element of promoting trade between the two countries.

There is further scope for increase of visit of business delegations between the two countries following the bilateral MoU signed in April this year.

There is further potential to enhance the trade volume between two countries for new products through tariff preferences granted under SAPTA, SAFTA and APTA.

The market access efforts have to be supplemented with the vigorous marketing / trade promotional campaigns and development of business to business networking and cooperation among the private sector” the Minister said.