Philippines, Sri Lanka strengthen economic ties

Under Secretary of the Ministry of Foreign Affairs of Philippines Erlinda F. Basilio met Minister of Economic Development Basil Rajapaksa today at the Economic Development Ministry.

At the outset Minister Rajapaksa said at the moment Sri Lanka will always remember the help extended by the Philippines in various international forums recently. Longstanding friendship between the two countries was strengthened from these actions he further said.

The Minister said SriLankan Airlines will expand its flight services to the Philippine very soon and that will help to boost trade, investment and tourism between the two countries.

Basilio said Philippine will soon establish a residency embassy in Sri Lanka since economic cooperation between two countries has enhanced rapidly. She said Philippines investor community is interested in investing ICT, port and telecommunication industries in Sri Lanka.

Two parties agreed to establish a machinery to exchange trade and business delegation between two countries. Basilio invited Rajapaksa to make an official visit to Philippine. So steps can be taken to further strengthen the economic relationship between two countries. The long history of friendship and close relations between Sri Lanka and the Philippines cover a wide range of areas, including political, economic and enduring people-to-people links. Diplomatic relations were established between Sri Lanka and the Philippines in January 1951 with the Government of the Philippines opening a legation in Colombo. Sri Lanka had a Charge d’ Affaires level  Mission, accredited to Japan,  and the relations  were upgraded to the Embassy level in Colombo and Manila  in 1964 and 1966 respectively.

In September 1998, a new Sri Lankan resident Mission was opened in Manila, with high priority given to coordinate aid and technical assistance programs to Sri Lanka from the Asian Development Bank, Manila.

The position of the Philippines as the founding member of the Association of Southeast Asian Nations (ASEAN) was also a vital political factor that led to the opening of the Mission. Economic relations between the Philippines and Sri Lanka have been active. The total trade turnover between the two countries has been growing significantly. As of October 2006, bilateral trade between the two countries however showed a similar scenario as in preceding years in favour of the Philippines. This is attributed generally to the composition of Sri Lanka’s imports from the Philippines, which consist of a range of higher-valued products.

Sri Lanka’s leading exports to the Philippines consist of fabrics, tires, tea, gloves, apparel and clothing accessories. The  Philippine’s  exports to Sri Lanka  consist  of parts and accessories of machines,   medicaments, activated carbon, cotton, iron and steel, perfumes, office machines, food (malt extract)  electrical machinery, sound recorders , construction materials, textiles and yarns, and chemical products etc. Tourist arrivals to Sri Lanka from Philippines increased by 47% in the year 2011 compared to the 2010. An Air Transport Agreement was signed between two countries on 18 December 1976 and Trade Agreement was signed on 8 December 1992, which provided for ‘Most Favoured Nation’ Treatment in Trade and Economic relations between the two countries.

Bahnarim Abu Guinomla, Ambassador of the Philippines, Theresa P. Lazaro, Assistant Secretary, ASPA, Victor Dimagiba, Director ASPA and William Terrence Perera, honorary consul General of the Philippines in Colombo also participated at this occasion. Pix by Chaminda Hittatiya