Malaysia calls for moving forward on FTA with Sri Lanka to boost bilateral trade

July 30, Colombo: Malaysia has expressed its strong interest on moving forward on the Free Trade Agreement (FTA) with Sri Lanka that was initially mulled in 2013, Minister of Industry and Commerce Rishad Bathiudeen says.

Minister Bathiudeen, who held discussions with the Malaysian Minister of International Trade and Industry YB Darell Leiking in Kuala Lumpur last week, welcomed Malaysia's strong interest in proceeding with a FTA with Sri Lanka agreed in principle.

"I welcome your interest on an FTA with Sri Lanka about which we agreed in principle. Such an agreement will boost Lanka-Malaysia trade in a great way," the Sri Lankan Minister said.

During the Second Session of the Joint Commission in Malaysia in October 2013 in Kuala Lumpur both sides agreed in principle to explore the future possibility of an FTA, which would boost bilateral trade further.

According to the Department of Commerce of Sri Lanka, bilateral trade between Sri Lanka and Malaysia in the five year period of 2013-'17 has increased by 20 percent to US$ 693 million. This year January-June trade was at a strong $361 million.

The bilateral trade is in favor of Malaysia as with 92 percent of total trade in 2017 were imports from Malaysia at $641 million. Malaysia was the seventh largest source of imports of Sri Lanka in 2017. Main imports from Malaysia (in 2017) were wood, Portland cement, plastics, petrol, synthetic rubber, and Gas oil/Diesel. Sri Lanka's leading exports to Malaysia (2017) were food preparations, meslin flour, tea and apparel.

Explaining the initial actions taken on Sri Lanka-Malaysia Free Trade Agreement so far, Minister Bathiudeen invited the Malaysian official and private sectors to explore investment and trade potentials in Sri Lanka and provide training opportunities for Sri Lanka's SMEs in Malaysia.

Pointing out that major economic reforms are planned under the Unity Government the Minister said he will enlighten bot the President and the Prime Minister of Malaysia's interest.

Minister Bathiudeen was joined in Kuala Lumpur by High Commissioner of Sri Lanka in Malaysia A.J.M. Muzzammil as well as officials of the Department of Commerce of Sri Lanka.

Source: Colombo Page