Sri Lanka to begin FTA negotiations with Malaysia

Thursday, 13 June 2024 01:32 - - {{hitsCtrl.values.hits}}

By Charumini de Silva

The Cabinet of Ministers at its meeting on Tuesday approved a proposal by President Ranil Wickremesinghe to commence negotiations for a Free Trade Agreement (FTA) with Malaysia.

“Recognising the importance of attracting export-oriented foreign direct investments, diversifying exports and expanding market access for goods and services, the Government has introduced radical measures to improve the economy. The FTA with Malaysia is another step to enhance its economic stability through deeper integration with strategic economies,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the weekly post-Cabinet meeting media briefing yesterday.

He said Malaysia is identified as Sri Lanka’s 34th largest export destination and a key member of ASEAN and the Regional Comprehensive Economic Partnership (RCEP), plays a pivotal role in this strategy.

“Sri Lanka’s total exports to Malaysia amounted to $ 58.3 million, underscoring the significance of this trading relationship,” Gunawardena added.

He pointed out that the proposed FTA aims to foster closer economic ties between the two countries, facilitating easier access to each other’s markets and promoting greater trade and investment flows.

Sri Lanka has signed FTAs with India, Pakistan, Singapore and Thailand. By securing such agreements, the Government hopes to push local industries to transform into an export-led economy.

Government’s vision to integrate with the largest economies in Asia as part of its strategy for export diversification, whilst protecting and promoting existing major export markets and attracting investment.