SL-Turkey mull economic and technical cooperation

By Charumini de Silva

In a bid to enhance bilateral trade between Sri Lanka and Turkey, a highlevel business delegation from Sri Lanka will meet in Ankara, Turkey this week for a Joint Committee Meeting on Economic and Technical Coorperation, the Turkish Envoy in Sri Lanka confirmed recently.

Speaking at the opening ceremony of the business to business (B2B) meeting between Turkey and Sri Lankan business organisations held in Colombo last week, Republic of Turkey Ambassador Tunca Ozcuhadar said this meeting would be a momentous step in the right direction to forge strong bilateral trade ties between the two countries.

A delegation led by Industry and Commerce Minister Rishad Bathiudeen along with officials from the Board of Investment (BOI), Ceylon Tea Board, Sri Lanka Customs will visit Ankara on 11 and 12 November and negotiate with the responsible ministers in Turkey.

“Our relations between business organisations in the two countries as well as Government to Government relations are on a mutually beneficial path,” he added.

The Ambassador pointed out that earlier this year, a delegation from Turkey-Sri Lanka Business Council of the Foreign Economic Relations Board of Turkey visited Sri Lanka and signed a MoU with the Ceylon Chamber of Commerce. 

Noting that According to statistics up to the third quarter of 2016, Sri Lanka exported goods worth $115 m to Turkey, including tea and textiles. Similarly, during the same period, Turkey exported to Sri Lanka goods worth $51 m, including electrical and electronic items. 

Considering these numbers, the Ambassador asserted that there is great potential for the two countries bilateral trade to improve and hence, they are taking concrete steps to further strengthen trade ties between Sri Lanka and Turkey.

Ambassador Ozcuhadar stressed that Turkey is stable and ready for investment. He stressed great interest from the Turkish side to establish a Turkish Business Chamber in Colombo and was looking for a response from Sri Lankan counterparts.

He emphasised that to create a more conducive atmosphere for business in Turkey, the Government has introduced investor friendly packages with simplified procedure at low setting-up cost.

“The procedure regarding setting up a company in Turkey has been simplified and setting up costs has been reduced. For those investing in Eastern Turkey, there is also a five to 10 year tax holiday. The Turkish Government has taken all these steps and more to increase trade and investments,” he explained.

Despite the global economic slowdown over the last few years, Turkey has been showing great economic performance since 2009. In the first quarter of 2016, Turkey’s economy has been growing at a rate of 4.8%. According to recent data, Turkey is among the top five countries in the world with the highest growth rate in 2016. When indicators are compared, the debt of European countries is higher than that of Turkey.

Last year, Turkey’s economy created 1.1 million job opportunities. Since the global economic crisis in 2009, the country has created more than 7 million jobs in Turkey.

“Our Government is taking measures for medium and long term investments to increase production and exports, and to create more job opportunities. All these are indicators of the thriving Turkish economy,” the Ambassador said.

He said similarly in Sri Lanka, there is considerable economic growth. Sri Lanka has recorded 2.6% economic growth for the second quarter of 2016. Among industrial activities, construction has increased by 6.9% during the second quarter on a year-on-year basis. In addition, electricity, gas, steam and air conditioning supply also show a considerable growth rate of 7%.

Against this backdrop, the Ambassador called for investors and businessmen of both countries to explore vast trade opportunities.  

Pic by Upul Abayasekara