EDB gives boost for greater SL-B’desh bilateral trade

A multi-party meeting on enhancing bilateral trade between Sri Lanka and Bangladesh was held at the Export Development Board (EDB) on 3 November under the patronage of the Minister of Trade Dr. Bandula Gunawardena and High Commissioner of Bangladesh to Sri Lanka Tareq Md Ariful Islam with the participation of companies that export products to Bangladesh.

Representatives from several Government institutions attended the meeting and issues faced by the Sri Lankan exporters when exporting to Bangladesh were taken up for discussion with the Minister of Trade and the High Commissioner. About 30 companies representing tea, cosmetics and personal care products, textiles, electrical and electronic products, woven fabric and rubber products, including tyres and chemical products have joined the meeting.

Speaking at the event, Minister Gunawardena said that currently, his ministry, with the Department of Commerce and other line agencies, is working on the proposed Bangladesh – Sri Lanka Preferential Trade Agreement (BS – SL PTA) to promote bilateral trade for the benefit of the citizens of both countries. 

Expressing his views, the High Commissioner of Bangladesh stressed the importance of development of trade, investment and logistic services, including shipping and air transport between the two countries considering the close proximity and location advantage.

EDB Chairman Suresh de Mel remarked that the meeting would provide a good platform for the Sri Lankan business community to share and discuss their views and concerns with the High Commissioner as well as the relevant Government authorities of Sri Lanka in order to meet the objective of increasing exports to Bangladesh.  

Exporters, who joined the meeting physically as well as via the ‘Zoom’ platform, pointed out the importance of the Bangladesh market for their products and investments. They directed their concerns when exporting to Bangladesh to the Minister, the High Commissioner and the officials present at the meeting. Among those, the high rate of Customs Duty for Sri Lankan exports, visa matters and insufficient container ships and flights among the two countries were the main issues. 

In response to the concerns raised by the exporters, the options available for obtaining visas to visit Bangladesh were explained. The proposed Bangladesh-Sri Lanka Preferential Trade Agreement will be the option for receiving duty concession for the issue of higher duties when exporting to Bangladesh.

Bangladesh is a very important trading partner for Sri Lanka within the SAARC Region. The total trade between two countries in 2020 was $ 200 million, and Bangladesh was the 21st largest export destination for Sri Lanka in 2020 with a value of $ 153.44 million 

Key export products of Sri Lanka to Bangladesh are electrical and electronic products, woven fabrics, petroleum oils, petroleum gases, textile articles, products of plastics, nails, screws, bolts and nuts of metal, and paper and paper products.

Total imports from Bangladesh to Sri Lankan in 2020 was $ 47.89 million. This was an increase of 17.29% compared to the year 2019. Imports from Bangladesh include pharmaceutical products, apparel, etc.

Ministry of Trade Secretary J.M. Bhadranie Jayawardhana, EDB Director-General Chitranjali Dissanayake, Bangladesh High Commission in Sri Lanka Counsellor – Political Md. Reyad Hossain, and officials of Department of Commerce and EDB also attended the meeting.