- Substantial rise in bilateral trade projected
- New Bilateral Air Services Agreement signed
- Thai to resume daily flights to Colombo
- Enhanced cooperation in gem and jewellery sector
Several crucial agreements were signed during Thai Prime Minister Srettha Thavisin’s visit to Sri Lanka at the Presidential Secretariat, including the Sri Lanka Thailand Free Trade Agreement (SLTFTA), which aims to boost Sri Lanka’s transformation into a high-income country by 2048.
A new Bilateral Air Services Agreement was also signed between the two countries, superseding the 1950 agreement, emphasizing a commitment to improving aviation relations. The Gem and Jewellery Research and Training Institute (GJRTI) of Sri Lanka and the Gem and Jewellery Institute of Thailand (GIT) signed an MoU, solidifying their commitment to bilateral cooperation.
Thailand’s Minister of Commerce Phumtham Wechayachai and Minister of Trade, Commerce and Food Security Nalin Fernando signed the FTA on behalf of the Governments in the presence of President Ranil Wickremesinghe and Thai Prime Minister Thavisin. Bilateral trade between the two countries in 2021 amounted to US$ 460 million and this is expected to rise to around US$ 1.5 billion in the next few years. Sri Lanka exports mainly tea and precious stones to Thailand and imports electronic equipment, food, rubber, plastics and pharmaceuticals.
This agreement deals with trade in goods, rules of origin, technical barriers to trade, services, investment, customs Procedures, Trade Facilitation, Economic Cooperation, Intellectual Property Rights and dispute resolution. The FTA has 14 Chapters and was inked after more than nine rounds of extensive discussions in both capitals.
President Wickremesinghe told the media at the Presidential Secretariat after the FTA was signed that the primary focus revolves around accelerating economic collaboration between Sri Lanka and Thailand. President Wickremesinghe highlighted the untapped potential for expanding trade and investment ties between the two countries, emphasizing the significance of their strengthened economic partnership.
President Wickremesinghe highlighted the productive discussions on elevating Sri Lanka-Thailand relations, focusing on tourism, trade and various areas of economic cooperation. Notable agreements were reached in the defence sector, emphasizing information and intelligence sharing to combat transnational organised crime.
“The FTA is a milestone in our economic partnership and operationalising the FTA will be a priority. The FTA is expected to boost trade and investment ties between the two countries,” the President said.
“Today, we have also had a very productive discussion on elevating Sri Lanka –Thailand relations. During the bilateral discussion between our two delegations which concluded a little while ago, we covered a wide range of areas of cooperation. There is considerable potential to develop tourism, trade and other areas of economic cooperation between Sri Lanka and Thailand. We see great potential for enhanced investments from Thailand coming into Sri Lanka and we discussed possible areas for collaboration. We have also had a detailed exchange on cooperation in the agriculture and fisheries sectors which both countries have a keen interest in pursuing.”
The President said that one of his principle strategies of economic growth and prosperity is to enhance bilateral trade, particularly with proven future potential of the East Asian and ASEAN region including Thailand. “As Sri Lanka begins to stabilise its economy and regain international confidence towards recovery and growth, we are looking at Thailand’s support as Sri Lanka undertakes this very important journey of economic transformation and integration with Asia.”
The leaders expressed intent to maximise shared values bilaterally and in multilateral fora, with Thailand’s hosting of the sixth BIMSTEC Summit this year.
The two leaders also addressed the Thailand-Sri Lanka Business Forum at the Kingsbury Hotel.
President Wickremesinghe emphasized the historic trade relationship between the two nations, which predates even the Sukhothai Kingdom. He urged a revival of this connection, considering the strategic positions of Sri Lanka in the Indian Ocean and Thailand in the Asia Pacific. The President also acknowledged the cultural ties, including shared traditions such as the Ramayana and Theravada Buddhism.
Expressing his views at the Business Forum, Thai Prime Minister Thavisin highlighted potential collaborations in Sri Lanka’s growing hospitality industry, covering food and beverages, hotel supplies and skills development through cooperation between academies and hospitality institutes. The Prime Minister encouraged more Thai companies to invest in Sri Lanka’s infrastructure, manufacturing and energy sectors. He also urged increased tourism, suggesting Thai companies capitalise on Sri Lanka’s infrastructure projects and tourist advantages in markets like India, UAE, and the EU.
