(UTV|COLOMBO) – Thailand plans to sign a strategic partnership deal with Sri Lanka, hoping to raise bilateral trade value to US$ 1.5 billion in 2020, the Bangkok Post reported.
According to Director-General of the Thai Trade Negotiations Department Auramon Supthaweethum the deal could possibly be signed in July or in the months to follow after the Thai cabinet gives the nod to the strategic partnership framework soon to be proposed by the Commerce Ministry.
“Sri Lanka is a potential country for Thailand to have economic cooperation with, notably in sectors like infrastructure, agriculture, fisheries, jewellery, tourism, finance and information technology,” Mrs Auramon was quoted as saying.
“The bilateral strategic partnership deal will help expedite trade and investment between the two countries, as the free trade agreement (FTA) talks generally take a long time,” the official said.
According to Mrs Auramon, the cabinet has already approved the negotiation framework for the FTA talks with Sri Lanka. These will cover trade in goods, services, investment and comprehensive economic cooperation.
The two parties have set a target to officially announce the FTA talks and expect to open the first round this year.
Mrs Auramon said Sri Lanka is a developing country that boasts supporting factors for trade and investment. Over the past five years, Sri Lanka’s economic expansion averaged 6% annually. More importantly, Sri Lanka has an open policy for foreign investment.
The official added that Sri Lanka is looking for investment and joint venture opportunities with foreign partners in several sectors, including hotel management, tourism-related businesses, hospitals, pharmaceuticals, medical supplies and jewellery design. Sri Lanka is also interested in importing more food, household appliances, furniture, and home furnishings.
Sri Lanka and Thailand first began considering an FTA in 2016, when Deputy Prime Minister Somkid Jatusripitak made an official visit to the island nation.
The two countries signed a memorandum of understanding on technical cooperation, a letter of intent on cooperation in small and medium-sized enterprise development, and a joint program on tourism for 2016-18.
On Feb 17 of last year, Mr Somkid, who met Malik Samarawickrama, Sri Lanka’s development strategies and international trade minister, said the two countries aimed to sign an FTA to triple bilateral trade to $1.5 billion over the next five years.
During 2013-17, two-way trade between Thailand and Sri Lanka averaged $491 million a year. Last year, bilateral trade totaled $513 million, up 8.7% from 2016.
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