Thailand Prime Minister to ink FTA with Sri Lanka in February: Bandula

Wednesday, 3 January 2024 00:32 - - {{hitsCtrl.values.hits}}

Cabinet Co-Spokesman and Minister Bandula Gunawardena

Cabinet Co-Spokesman and Minister Bandula Gunawardena yesterday confirmed that Thailand’s Prime Minister Srettha Thavisin will formally sign the Free Trade Agreement (FTA) during his scheduled visit to Sri Lanka in February.

“It is a promising step towards boosting international trade relations,” he said responding to queries posed at the post-Cabinet meeting media briefing held yesterday.

In September 2023, following the sixth round of negotiations held from 21-23 August in Bangkok, Thailand it was announced that the two countries aim to sign the FTA on 3 February 2024 to coincide with the Independence Day celebrations of Sri Lanka on 4 February. (https://www.ft.lk/front-page/Sri-Lanka-and-Thailand-to-sign-FTA-on-3-February-2024/44-752579)

Separately, the Cabinet of Ministers at its meeting on Monday approved proceeding with the proposed Sri Lanka-Thailand FTA.

The move comes following the successful conclusion of the ninth round of FTA negotiations, which took place in Sri Lanka from 18-20 December 2023.

The relevant discussions have concluded, while legal and institutional issues have been referred to working groups for legal scrutiny.

In the ninth round of negotiations, the two countries agreed to include provisions for the simultaneous elimination of 50% of the cumulative duties applicable to the Harmonised System classification codes classified in the Sensitive List of the Tariff Liberalisation Program at the beginning of the 16th year from the date of entry into force of the agreement.

Accordingly, both sides agreed to reduce the duration of the Tariff Liberalisation Program from 18 years to 16 years in the ninth round of negotiations.

Negotiations for the FTA between Sri Lanka and Thailand resumed in November, after being put on hold for four years, consequent to the COVID-19 pandemic and ongoing restructuring of Sri Lanka’s State-owned enterprises.

During the first 10 months of 2023, the bilateral trade value between Thailand and Sri Lanka was $ 320.37 million. Thailand exported goods worth $ 213.49 million, while it imported goods worth $ 106.88 million from Sri Lanka.