Sunday Dec 15, 2024
Sunday Dec 15, 2024
Monday, 31 August 2020 00:00 - - {{hitsCtrl.values.hits}}
EDB Chairman Prabhash Subasinghe during the meeting with Chinese Embassy Economic and Commercial Counsellor Yang Zuoyuan
Export Development Board (EDB) Chairman Prabhash Subasinghe recently met with Chinese Embassy Economic and Commercial Counsellor Yang Zuoyuan to discuss the opportunities available to enhance trade between the two countries.
The discussion focused on the importance of further strengthening of trade between the two countries in view of fully utilising the trade potential that lies vastly untapped and discussion highlighted the early recoveries achieved by both the countries after the COVID-19 pandemic.
According to the International Monetary Fund (IMF), China’s economic growth after the pandemic is predicted to be 8.2%, which will open up vast opportunities for its trading partners. Benefits that could be accrued through preferential market access were also discussed during the meeting, where such tools could be used to narrow down the current trade gap between the two countries.
In this context, the reactivation of the negotiation process of the proposed China-Sri Lanka Free Trade Agreement (FTA) was highlighted, as this would act as a catalyst to increase the trade between Sri Lanka and China by exploiting the opportunities available in the market.
Further the discussion evolved on China International Import Expo (CIIE) where the EDB organised Sri Lanka’s participation from its inception in 2018. It was noted that arrangements were being made by the EDB to organise Sri Lanka’s participation at CIIE 2020 as well. This event was an important move of China to open its market and promote trade and was a platform for international cooperation for all countries to showcase their development achievements and discuss global economic and trade issues. Importance of Chinese investment into to Sri Lanka was also discussed taking advantage of regulatory framework of both countries. It was pointed out that this would also lead to increasing regional exports utilising the existing FTA concessions and accelerate the commercial ties. China is a key trading partner for Sri Lanka. Total merchandise trade between the two countries stood at $ 4.3 billion in 2019. Being the top import destination of Sri Lanka, total imports from China to Sri Lanka was $ 4 billion last year which is 21% of total imports.
In 2019, Sri Lanka exported a total of $ 229 million goods to China which included tea, activated carbon, electronic and electrical products, coir fibre, apparel, mineral sands, petroleum products, pneumatic and retreated rubber tyres and tubes.
According to DAFT 2020, nearly 400 million people in China are considered as the middle class income earners where it is expected to grow 70% by year 2030. Thereby, Sri Lankan exporters have a great opportunity to explore this lucrative market, particularly for those engaged in apparel, spices, fresh fruits, and other food and agriculture products.
