Thailand is expediting the implementation of its Free Trade Agreement (FTA) with Sri Lanka, following discussions between Deputy Minister of Commerce Suchat Chomklin and the Ceylon Chamber of Commerce. Signed on February 3rd last year, the FTA seeks to bolster trade, investment, and tourism ties between the two nations.
Key Takeways
- Thailand aims to expedite the Thailand-Sri Lanka Free Trade Agreement (FTA) execution to bolster trade, investment, and tourism. This initiative follows talks between Thailand’s Deputy Minister of Commerce and the Ceylon Chamber of Commerce, emphasizing a proactive strategy to diversify exports and draw global investments.
- Sri Lankan business representatives anticipate reduced trade barriers for exports like tea and spices under the FTA, along with seeking technical support in agriculture and finance. The FTA is poised to enhance bilateral tourism via cultural exchanges, with Sri Lanka being a key South Asian trading partner for Thailand.
- The FTA promises economic opportunities, with Thailand already holding a trade surplus with Sri Lanka. Thai government-backed low-interest loans support SMEs’ global expansion. Discussions also addressed Sri Lanka’s need for banking assistance to facilitate international trade, urging expedited FTA enforcement for mutual benefits.
Deputy Minister Suchat highlighted Thailand’s proactive FTA approach to diversify export markets and attract international investments. Sri Lankan representatives are optimistic that the agreement will reduce trade barriers, benefiting key exports like tea, spices, and minerals through tariff exemptions. Additionally, Sri Lanka is seeking technical support from Thailand in agriculture, finance, and SME development. The FTA also aims to enhance tourism and cultural exchanges. In 2024, bilateral trade amounted to 438.7 million USD, with Thai exports at 313.7 million USD and Sri Lankan imports at 124.99 million USD. To support Thai businesses, low-interest loans are being offered, while Sri Lanka seeks financial aid for trade facilitation.
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