S’pore-SL FTA to be signed before Dec.

• Singapore’s Foreign Minister says keen to expand b2b engagement beyond existing 350 companies

 By Himal Kotelawala

Singapore yesterday affirmed that the proposed Free Trade Agreement (FTA) with Sri Lanka will be signed before the year ends, with the objective of Sri Lanka having access through Singapore to the East Asian region and the City State having the chance to forge stronger links with Indian Ocean countries.  

Visiting Singaporean Foreign Minister Vivian Balakrishnan, flanked by his Sri Lankan counterpart Ravi Karunanayake in Colombo, told journalists that his country is encouraged by the rapid developments taking place in Colombo, noting the Sri Lankan Government’s drive towards reform and greater economic engagement with the rest of the world.

There over 350 Singaporean companies currently operating out of Sri Lanka across a range of sectors including food and beverage, manufacturing, IT, cyber security and power, and Balakrishnan seeks further business-to-business collaborations between the two countries facilitated by the proposed FTA.

“Incumbent on both governments is the need to create a conducive climate for business. And businesses look forward to stability, predictability and reliability. One component of this is the conclusion of our negotiations for the FTA,” he said, reiterating that both governments are committed to signing the agreement before the end of 2017.

“It’ll be a model, comprehensive, high quality, ambitious FTA. It’ll demonstrate to the world that both of us are open for business, and we encourage foreign investments,” said Balakrishnan.

Commenting on Sri Lanka’s much communicated desire to be a regional hub, the visiting Minister said that he “agrees wholeheartedly” with this ambition, acknowledging that Sri Lanka is, indeed, a hub for transshipment and economic ties across the Indian Ocean.

“Singapore is a hub in Southeast Asia. We’re complimentary, not competitive. And the bigger the pipeline we can build between these two hubs, the greater the opportunities will be for our respective interests. We believe that with the FTA Singapore can serve as your gateway in Southeast Asia, and Sri Lanka will be our gateway in the Indian Ocean. This will be an example of a win-win outcome for both sides,” said Balakrishnan.

Singapore will also play a role in training public sector employees in Sri Lanka, he said, in order to deepen relations among civil servants and build a reservoir of goodwill. The city state is also happy to play a role, he said, in supporting Sri Lanka in the Yahapalana Government’s reform and development agenda.

Foreign Minister Karunanayake concurred with Balakrishnan’s comment, reaffirming the Government’s commitment to sign the FTA in the latter part of 2017.

According to Karunanayake, in discussions held between the two ministers, particular attention was paid to the ways and means of further strengthening bilateral trade, and investment through the FTA.

“We explored the opportunities available for Singaporean investors in the ongoing mega development projects in Sri Lanka, including the Colombo International Financial City (CIFC), the Western Megapolis and the Trincomalee District development projects,” said Karunanayake.

Tourism development programs between the two countries, including capacity building and promotional activities, have been discussed, according to Minister Karunanayake, with Singapore offering a system for the tourism sector under the Singapore Cooperation Program.

Sri Lanka and Singapore are also expected to work closely in addressing shared security challenges in order to preserve maritime security in the Indian Ocean, said Karunanayake.

Minister Balakrishnan is scheduled to meet Prime Minister Ranil Wickremesinghe today.