Bangladesh keen on comprehensive partnership with Sri Lanka

• Commerce Minister in town for 5th Joint Economic Commission Meeting today with Sri Lanka
• Two countries likely to directly focus on broader arrangement than FTA to include trade and services

By Nisthar Cassim

Bangladesh is keen on a comprehensive economic partnership with Sri Lanka as the two countries will sit down today for talks to strengthen ties.

South Asia’s fastest growing economy’s Commerce Minister is in town on a two-day visit and lead his country delegation at today’s fifth Bangladesh-Sri Lanka Joint Economic Commission meeting with his counterpart Industry and Commerce Minister Rishad Bathiudeen. Today’s talks are first since 2014. 

Bangladesh Commerce Minister Tofail Ahmed told the Daily FT yesterday in an exclusive interview that his country is excited and committed to further stronger ties with Sri Lanka.

“We have the potential to broaden ties to embrace greater economic cooperation for mutual benefit and I am confident my visit will be a further step in this direction,”  added the Minister during the interview along with Bangladesh High Commissioner Riaz Hamidullah.

Instead of a Free Trade Agreement the two countries will discuss a Comprehensive Partnership arrangement given the new dynamics of two countries. 

During his visit he was scheduled to meet Development Strategies and International Trade Minister Malik Samarawickrama and Finance Minister Ravi Karunanayake whilst he had cordial discussions with Shipping Minister Arjuna Ranataunga. Ahmed who has been Banggladesh Commerce Minister since 2014 is in Sri Lanka along with a senior business delegation from Dhaka as well.

Sri Lanka-Bangladesh bilateral trade is very small at $ 75 but Minister Ahamed is emphatic it can be much larger. The reason is Bangladesh exports are worth $ 35 billion and growing at rapid pace. Its apparel exports are worth $ 28 billion with plans to increase it to a whopping $ 50 billion by 2020. Sri Lanka’s exports is just over $ 11 billion with apparel amounting to over $ 5 billion. 

With its economy growing at over 7%, Bangladesh is forging ahead and Minister Ahmed pointed out Sri Lanka can benefit as well. Among products which Sri Lanka can import at competitive pricing include pharmaceuticals, cement, leather products as well as commodities such as rice and potatoes.  

Given the fact that Bangladesh enjoys favourable market access being a Least Developed Country, the Minister said Sri Lankan export oriented industries and new businesses can tap the potential aided by its skilled labour in a population of over 160 million. 

He believes Bangladesh can benefit from Sri Lanka’s strategic geographic location with Colombo port as its main shipping hub as well as benefitting from expertise in ICT, healthcare and tourism. Bangladesh ‘ apparel industry has benefitted from Sri Lankan management and expertise. In terms of logistics, Bangladesh is keen to see a regular dedicated feeder service between Chittagong and Colombo for cost efficient and quicker transportation of its exports as opposed to via Singapore which takes longer.