Wednesday May 15, 2024
Wednesday May 15, 2024
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Trade, Commerce, and Food Security Minister Nalin Fernando (right) with Thai Deputy Prime Minister and Commerce Minister Phumtham Wechayachai
Sri Lanka and Thailand on Saturday undertook the biggest boost to strengthen bilateral ties, signing a Free Trade Agreement (FTA), as well as new deals to enhance air services and the gem and jewellery sector.
President Ranil Wickremesinghe and Thailand Prime Minister Srettha Thavisin witnessed the landmark development ahead of Sri Lanka’s celebration of 76th Independence Day at which the latter was the Guest of Honour.
“This move aims to enhance market opportunities, with negotiations covering various aspects such as Trade in Goods, Investment, Customs Procedure, and Intellectual Property Rights,” a statement from the President’s Media Division said.
Trade, Commerce, and Food Security Minister Nalin Fernando represented Sri Lanka by signing the agreement, while Thai Deputy Prime Minister and Commerce Minister Phumtham Wechayachai represented Thailand by signing the FTA.
Thailand, the 37th exporting destination of Sri Lanka, holds significant economic importance, with a GDP of $ 495 billion in 2022 and is one of the largest outward investors in ASEAN. Thailand has brought over $ 92 Million worth of FDI to Sri Lanka during the period from 2005 to 2022. In 2018, it was anticipated to triple the existing bilateral trade value ($ 550 million) to $ 1.5 billion within four years. One of the main objectives of entering into a Free Trade Agreement (FTA) with Thailand is to enhance market opportunities for Sri Lanka with possible expansion.
The SLTFTA, having undergone extensive negotiations, has received legal clearance and is set to further strengthen economic ties between the two nations.
In a related development, the Governments of Sri Lanka and Thailand signed a new bilateral air services agreement, providing for liberalised services between the two countries. The agreement, which supersedes the 1950 agreement, reflects the commitment to enhance aviation relations and regulatory frameworks.
On behalf of Sri Lanka, the Ports, Shipping, and Aviation Minister Nimal Siripala de Silva signed the agreement, while representing Thailand its Deputy Minister of Foreign Affairs Jakkapong Sangmanee signed the document.
The Gem and Jewellery Research and Training Institute (GJRTI) of Sri Lanka and the Gem and Jewellery Institute of Thailand (GIT) also solidified their commitment to enhance bilateral cooperation by signing a Memorandum of Understanding (MOU).
Representing Sri Lanka, GJRTI Director General (Actg) B.G.R.W. Gamlath, and representing Thailand its GIT Director Sumed Prasongpongchai, signed the Memorandum of Understanding on behalf of the two countries.
PMD said the gem and jewellery industry, deeply rooted in Sri Lanka’s history, has flourished due to its production of high-quality gems, positioning the country uniquely in the global market. Thailand, currently holding a distinctive position in the international Gem and Jewellery industry, recognises the importance of collaboration. With the shared goal of developing and promoting the industry in both nations, the MOU focuses on information exchange, scientific and technical research, and training activities.
The agreement stems from the 2018 strategic economic cooperation MOU between the Governments of Sri Lanka and Thailand. GJRTI and GIT will collaborate on gem deposit and exploration research, value addition to gemstones, and jewellery manufacturing. The exchange of gem-related rock samples and minerals between the two institutes will be facilitated under the laws and regulations of both countries.
GIT will offer training courses in gemmology, jewellery designing and manufacturing, contributing to the skill development in Sri Lanka. The collaboration aims to increase economic returns from the Gem and Jewellery industry by sharing information on gem materials and deposits.
