Sri Lanka discusses strategic partnership with Thailand

Development Strategies and International Trade Minister Malik Samarawickrama visited Thailand from 16-18 February to explore avenues of expanding and diversifying bilateral trade and investment relations and progressing the establishment of industrial parks as an aspect of the Sri Lanka Government’s economic policy. 

The Minister of Fisheries and Aquatic Resources Mahinda Amaraweera and State Minister of Agriculture Wasantha Aluvihare also joined this visit on the context of furthering these two primary areas of cooperation between the countries.  

Minister Samarawickrama had discussions with the Thai Deputy Prime Minister, Dr. Somkid Jatusripitak, at which Commerce Minister Apiradi Tantraporn was present.

Recalling the protracted process in formulating the envisaged Free Trade Agreement (FTA) between the two countries which is underway, Deputy Prime Minister Somkid proposed the relationship be elevated to a strategic economic partnership as a precursor to its conclusion. 

Minister Samarawickrama, welcoming this proposal, underlined the need to identify focused cooperation in priority areas for the two countries. The areas of agriculture, gems and jewellery, electronics, rubber automotive parts, processed foods, industrial parks and tourism were some which were originally outlined by Minister Samarawickrama. 

The two sides undertook to identify the priority sectors of cooperation under this partnership for formalisation. In furtherance of the bilateral economic ties, Deputy Prime Minister Somkid undertook to visit Sri Lanka in August 2017 with a high level delegation in response to the Sri Lankan Minister’s invitation.

Minister Samarawickrama assured the Thai Deputy Prime Minister of the political stability in Sri Lanka with the formation of a national unity government, where the main two political parties are working together towards the country’s development. 

He added that the Government was reviewing the regulations for Foreign Direct Investment (FDI) in order to make them more investor friendly. The Minister pointed out that measures are being taken to reinvigorate the Indo-Lanka FTA and that with Pakistan, while it is expected to conclude such agreements with China and Singapore this year.  

The FTA and the deepening of economic ties with Thailand are all aimed at tripling bilateral trade to reach the target of $ 1.5 billion over the next five years as endorsed by the leaders of the two countries. 

The visiting Ministers also met with the Thai Minister of Industry, Dr. Uttama Savanayana, who emphasised the need for Asian countries to come together as partners in the present international climate. 

He explained that Thailand was working on its digital infrastructure and e-commerce structures to also bring rural areas into the mainstream economic system. Minister Samarawickrama noted that Sri Lanka has much to learn from the Thailand’s successful industrial development. 

He referred to the need of Thai businessmen having increased commercial links with Sri Lanka and said that the Government was exploring ways to improve the country’s world ranking in the ease of doing business index. 

The Minister proposed that considering the developed Thai gem and jewellery industry and the availability of high quality gem stones in his country, joint ventures could be established in Sri Lanka. This would enable access to the large subcontinent market for jewellery through Sri Lankan FTAs.  

Minister Samarawickrama also requested for there to be transfer of technological knowledge, capital and regular exchanges at an official level. 

He confirmed Sri Lanka’s participation in the industry fair to be held in Bangkok in July 2017. It was also stated that the Sri Lanka Export Development (EDB), with the support of the Sri Lanka Embassy in Thailand, will be organising the participation of Sri Lankan exporters at the 60th Bangkok Gem and Jewellery Show in September for which a Memorandum of Understanding was signed  in Colombo  prior to the ministerial visit between the Department of International Trade Promotion of the Ministry of Commerce in Thailand and the Export Development Board of the Ministry of Development Strategies and International Trade of Sri Lanka.

The delegation visited Amata Nakorn Industrial Estate in Chonburi Province and went to the Rojana Industrial Park in Ayutthaya with the Ambassador of Thailand to Sri Lanka to learn firsthand about the establishment, management and maintenance of industrial parks as well as their best practices and the marketing of such facilities. 

The ministers were also met by the founder and CEO of Amata Corporation, Vikrom Kromadit, who offered to share his experience in the area of industrial estate development.

The Minister of Fisheries and Aquatic Resources and State Minister of Agriculture took the opportunity to highlight their areas of interests during the discussions with the Thai Deputy Prime Minister and the Ministers of Commerce and Industry. In this context, it was outlined that Thai investors should consider the aquaculture parks in Sri Lanka, with special interest in crab and prawn breeding. They brought these prospects to the attention of the Thai private sector.  

Meetings with the private sector were facilitated by the Board of Trade, with representatives from the associations of rice producers, tuna and frozen food, processed food, hospitality, sugar, textiles and apparel, gem and jewellery, heavy machinery, construction, energy, automotive parts and financial services. 

Minister Samarawickrama underscored the advantages of investing in Sri Lanka and pointed out the need for developing Sri Lanka’s export basket by introducing new value-added products for which related technologies and processes needed to increase yields are available with Thai companies which could forge joint ventures with their Sri Lankan counterparts. A presentation was made by the Board of Investments of Sri Lanka. Thai companies present demonstrated eagerness in collaborating with Sri Lankan business enterprises, which were noted for progressing.   

The Chairperson of the Export Development Board and senior officials of the Board of Investment and the Departments of Agriculture and National Aquaculture Development Authority (NAQDA) of Sri Lanka also joined this visit, together with Ambassador of Sri Lanka to Thailand Kshenuka Senewiratne.