SL-B’desh trade pact a reality by March 2017

Minister of Industry and Commerce Rishad Bathiudeen and Bangladeshi Minister of Commerce Tofail Ahmed (second from right) exchange agreed minutes of the fifth SL-B’Deshi Joint Economic Commission session at Cinnamon Lake Hotel on 9 November evening

The first ever Sri Lanka-Bangladesh Free Trade Agreement is to be a reality by next March – and both countries, being members of SAFTA, APTA and BIMSTEC are positioning for a huge cross-border cargo transshipment increase via the Port of Colombo. 

“My visit to Colombo is fruitful. Sri Lanka-Bangladesh FTA can become a reality when Sri Lanka’s high level leaders visit Dhaka next March,” said Minister of Commerce of Bangladesh Tofail Ahmed, addressing the press at the conclusion of the fifth SL-B’Deshi Joint Economic Commission at Cinnamon Lake Hotel on the evening of 9 November. The ministerial level session was led by B’Deshi Commerce Minister Ahmed (for B’Desh) and Minister of Industry and Commerce Rishad Bathiudeen (for Sri Lanka). 

The 9 November meeting was the first ministerial level trade talks between the two countries since the bilateral Dhaka JEC round in 2012. Both Sri Lanka and Bangladesh are members of SAFTA, APTA and BIMSTEC agreements.

“Today both sides completed trade discussions successfully. The cordial discussions to come to an agreement on a Free Trade Agreement between both countries, was preceded by my discussions on the same with three other Sri Lankan Ministers in the last few days while I am in Colombo. My visit to Colombo is fruitful. Sri Lanka-Bangladesh FTA can become a reality when Sri Lanka’s high level leaders visit Dhaka next March,” said B’Deshi Commerce Minister Ahmed, and added: 

“The Shipping Ministry of Bangladesh is also cooperating in this. We decided to use Colombo port in our future transshipments as we feel other regional ports to be expensive. Current trade levels are not high but will be increased.”

Through its feeder vessels, Bangladesh already transships to USA and Europe via Port Kelang, Singapore and Colombo. Transshipments to Europe, Middle East and US via Colombo Port (also said to be cheaper) is considered to bring in great savings for B’Deshi exporters, saving as many as four shipping days to US alone. Last month, (October 2016) Bangladeshi media reported that Shipping Minister Shahjahan Khan’s announcement that B’Desh would sign a priority berthing and tariff concession pact with Sri Lanka, linking its Chittagong Port with Colombo.

Bathiudeen addressing the evening press briefing said the 9 November JEC finalised a number of important matters. “The conclusion of Bilateral Investment Promotion and Protection Agreement between the two countries, Bilateral investment cooperation, MoU on National Standard Institutes between the two countries, advancing broader economic and trade framework, and implementation of a work program on agriculture and aquaculture between the two countries were the important matters done today. 

I am pleased to note that your delegation comprises of Bangladeshi companies from Chambers and apparel industry, who could explore joint ventures with Sri Lankan state owned companies, as well as private sector. I invite Bangladeshi companies to invest in these state pioneered projects, as well as our world class apparel industry.”

 The total bilateral trade between Sri Lanka and Bangladesh at $ 48 million in 2010 has grown by 2.7 fold to $ 131 million by 2015. Sri Lanka’s exports to Bangladesh too saw a steady increase in the past five years. In 2013 it recorded the highest increase of 45% (compared to 2012).

 The first SL-B’deshi Joint Economic Commission (JEC) session was held in 1985 in Dhaka.