Sri Lanka's cabinet approves starting talks with Indonesia for PTA

13 Jul '23

1 min read

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Insights

Sri Lanka's cabinet recently gave the nod to start talks with Indonesia, a potential trading partner, for a preferential trade agreement, ultimately leading to a free trade agreement.
Cabinet spokesperson Bandula Gunawardana said the government is expediting negotiations on signing trade agreements with Thailand, China and Singapore as well.

Sri Lanka’s cabinet recently granted permission to start negotiations with Indonesia for a preferential trade agreement (PTA), ultimately leading to a free trade agreement (FTA). President Ranil Wickremesinghe had sought cabinet approval early this week for the same.

The country has identified Indonesia as a potential trading partner to cultivate profitable trade ties, the government’s information department said.

In 2018, both sides had launched a joint feasibility study to commence negotiations for an FTA.

“Indonesia is one of the largest economies in South East Asia. The preferential agreement will help to enhance access to our exports and it will also allow (Indonesia) to import competitively,” cabinet spokesperson minister Bandula Gunawardana was quoted as saying by Sri Lankan media reports.

Gunawardana said the government is expediting negotiations on signing trade agreements with Thailand, China and Singapore as well.

Sri Lanka has also decided to formally request the member countries of the Regional Comprehensive Economic Partnership to join the trade pact.

Fibre2Fashion News Desk (DS)