Arab world’s largest economy wants joint council with Sri Lanka

Saturday, 19 May 2012 01:12 - - {{hitsCtrl.values.hits}}

Saudi Arabia, the Arab world’s largest economy, wants a joint council to boost trade ties with Sri Lanka, the Ministry of Industry and Commerce announced this week.

The Ministry quoted Dr. Mohammed H. Al-Kathiri, the Deputy Minister for Foreign Trade of Kingdom of Saudi Arabia as saying, “It would be necessary to complete appropriate procedures for forming a joint Council for 2003 agreement.”

Dr. Al-Kathiri had revealed this to Minister of Industry and Commerce Rishad Bathiudeen recently at the Sri Lanka-Saudi Arabia bilateral session held on the side-lines of the 13th Ministerial Meeting of UNCTAD General Assembly Session at the Qatari National Convention Centre, Doha, Qatar.

Minister Bathiudeen said: “Relevant officials of both countries should pursue appropriate action to promote bilateral relations under the general agreement on economic, trade, investment, scientific, technical, culture, youth and sports cooperation signed in December 2003. The agreement has paved the way for new areas of cooperation.”

The Minister added, “There are also investment opportunities that are open in Sri Lanka in its new upswing. The main sectors are tourism, infrastructure, construction, industry, IT/BPO and apparel.”

Both Ministers, having observed the current level of bilateral trade between Sri Lanka and Saudi Arabia remained has potential grow further, discussed various options available for enhancing bilateral trade. According to the Department of Commerce of Sri Lanka, the overall value of Sri Lanka-Saudi Arabia trade currently stands at US $ 142 million. In 2011, Sri Lanka’s exports to Saudi Arabia stood at US $ 62 million while Sri Lanka’s imports amounted to US $ 79 million. Among the main export items from Sri Lanka to Saudi Arabia are tea, edible fruits and nuts, articles of apparel and clothing accessories, rubber and related articles, edible vegetables and certain roots and tubers, paper and paper board, articles of paper pulp, miscellaneous edible preparations, inorganic chemicals while primarily import being mineral fuels and mineral oils. Other imports are plastics and articles thereof, sugar and sugar confectionery, copper and articles and fertilisers.

Sri Lanka and Saudi Arabia established diplomatic relations on 1 December 1974. Sri Lanka established its resident mission in Jeddah in November 1981 while the Kingdom started its resident mission in Colombo in 1995.

Sri Lanka–Saudi relations are further strengthened by the considerable Sri Lankan migrant population present in Saudi Arabia and also top Lankan banks – the Commercial Bank (in Jeddah), and Bank of Ceylon (representative office in Jeddah) – serving the Lankan migrant workers in SA.