South East Asia’s second largest economy has officially called for an FTA with Sri Lanka. Both Sri Lanka and Thailand are also pushing for three-fold increase in bilateral trade by 2020.

“Thailand is proposing a Free Trade Agreement with Sri Lanka. If Sri Lanka agrees, this FTA will usher in a new era of mutual cooperation and prosperity” said Deputy Prime Minister for Economic Affairs of Thailand Dr Somkid Jatusripitak in Colombo on Today.

Thai Deputy PM on Economy Jatusripitak was addressing the Business Forum arranged by the SLEDB at DHPL Auditorium in Colombo on the morning of 10 March. Reps from many top Lankan businesses and exporters packed the session.

Bilateral trade between Sri Lanka and Thailand hovered at $500 Mn in 2015.

“Joining me in my visit to Sri Lanka are the Thai Minister of Commerce, Industry, Vice Minister of Foreign Affairs. Thailand and Sri Lanka has over sixty years of established diplomatic relations. Bilateral friendship between both countries have been built naturally through the ages as economic, cultural, religious, people to people partnerships. Lankan HE Presidential delegation’s visit to Thailand last year has further strengthened bilateral partnership between both countries-in public, private, and people to people-spheres. On that promise, it is time to jumpstart our bilateral economic partnership with multi-dimensional and diverse representations from the public and private sectors of Thailand. Thailand and Sri Lanka share many similarities-natural landscape and our common Buddhist cultural heritage. In my personal experience and perspective, I see that Thailand can support and help fulfil Sri Lanka’s potential for growth, through public and private sector participation-in agriculture, tourism, Industry and SMEs, infrastructure and human resource development investments. We have signed 3 MoUs yesterday 9 March with Sri Lanka in this. We agree on our commitment to triple our bilateral trade to $1.5 Bn from present $500 Mn, in five years. Private sectors of both sides should make every effort in forging mutually beneficial ties” ” said Thai Deputy PM on Economy Jatusripitak, and added: “On the investment side, our Prime Minister, General Prayut Chan-o-cha, is committed to Thailand’s support and partnering in Sri Lanka’s development in industries and Trade. I am also pleased to inform you about the 2015-2019, five year development cooperation program co-chaired by the Minister of Strategic Development and International Trade of Sri Lanka that we discussed today morning, with emphasis on SME cooperation between both countries. The meeting also touched on increasing Ceylon tea quotas to Thailand, and provision of technical assistance and capacity building, and tourism. With geopolitics becoming the deciding factor for success in this era of globalization, we must consider about our own advantages for possible synergies –we are more strategically located in our respective regions: Thialand is at the heart of South East Asia and connects ASEAN to China. Sri Lanka is at the centre of the Indian Ocean linking Asia Pacific to Middle East, Africa and Europe. More than half of the world trade pass through the Indian Ocean. Therefore Thialand sees Sri Lanka as a partner. To further facilitate this partnership building, Thailand is proposing a Free Trade Agreement with Sri Lanka. If Sri Lanka agrees, this FTA will usher in a new era of mutual cooperation and prosperity. While the FTA is under consideration, I would like to urge everyone here; do not wait, and take this opportunity to promote closer economic partnership between our two countries.”

State Minister of International Trade Sujeewa Senasinghe, addressing the event stressed the new beginning in Sri Lanka from 8 January and highlighted to trade potential for Thailand partnering with Sri Lanka. “Our new government has brought in freedom, democracy, transparency and more importantly, investor confidence. And with the active Free Trade Agreements Sri Lanka has with India and Pakistan, Sri Lanka offers a great opportunity to Thailand investors. It is an encouraging factor for us that countries such as South Korea and Thailand have given us a direction so that we can emulate and establish standards. There are many similarities between both countries and it is very encouraging for us to have Thai Deputy PM on Economy Jatusripitak here enabling us to enter into important MoUs. We are aiming to triple bilateral trade to $1.5 Bn in a few years.”

The new MoUs and Letters of Intent between Sri Lanka and Thailand entered yesterday in Colombo unravels bilateral many opportunities –specifically in pharmaceuticals, fruits and vegetables, and automation.

Photo - Deputy Prime Minister for Economic Affairs of Thailand Dr Somkid Jatusripitak addresses the EDB Business Forum in Colombo today.