Singapore launches talks for free trade deal with Sri Lanka

Singapore and Sri Lanka have started talks for a free trade pact, including measures to free up trade in goods and services as well as investments, the city-state’s trade minister said on Monday.

Channel News Asia said the Minister for Trade and Industry S. Iswaran and his counterpart, Minister for Development Strategies and International Trade Malik Samarawickrama, signed a joint statement to officially launch the negotiations.

The signing was witnessed by Prime Minister Lee Hsien Loong and Sri Lanka Prime Minister Ranil Wickremesinghe, who is in Singapore from 18-19 July on an official visit.

Sri Lanka’s Prime Minister Ranil Wickremesinghe shakes hands with Singapore’s Prime Minister Lee Hsien Loong at the Istana in Singapore 18 July -REUTERS

A Reuters report quoted a statement from Iswaran saying that Sri Lanka’s push to build infrastructure and develop its industries presented prospects for Singaporean firms to partner with companies in the Indian Ocean nation and contribute to its growth.

“Amidst an uncertain economic environment, Sri Lanka offers good potential for Singapore companies looking to tap opportunities in new markets,” he said.

Channel News Asia quoted Iswaran as saying: “The launch of the SLSFTA negotiations signals the commitment of both governments to promote stronger economic ties and enhance trade flows by lowering barriers of entry and providing increased market access for Singapore and Sri Lankan companies.”

The Indian Ocean island was Singapore’s 39th largest trading partner last year, with two-way trade of S$ 2.05 billion ($ 1.52 billion), Singapore’s Ministry of Trade and Industry said. Singapore exports amounted to S$ 1.9 billion that year, while Singapore’s imports totalled S$ 146 million.