Thailand-Sri Lanka strategic partnership MoU scheduled

Thailand-Sri Lanka strategic partnership MoU scheduled

Thailand is scheduled to sign a memorandum of understanding (MoU) on a strategic partnership with Sri Lanka and announce the first round of Thailand-Sri Lanka free trade agreement (FTA) talks this week.

Auramon Supthaweethum, director-general of the Trade Negotiations Department, said during Prime Minister Prayut Chan-o-cha's official visit to Sri Lanka on July 12-13, Thailand will sign an MoU on a strategic partnership with the country, hoping to raise bilateral trade value to US$1.5 billion (49.8 billion baht) in 2020.

Deputy Commerce Minister Chutima Bunyaphaphasara is expected to represent Thailand at the MoU, which will be signed along with Malik Samarawickrama, Sri Lanka's development strategies and international trade minister.

The strategic partnership covers 10 sectors: investment, infrastructure, agriculture, fisheries, gems and jewellery, tourism, small and medium-sized business development, financial cooperation, packaging and information technology development.

Mrs Auramon said the cabinet Tuesday endorsed the MoU.

"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," she said.

More importantly, Sri Lanka has an open policy for foreign investment.

Mrs Auramon said 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 an MoU on technical cooperation, a letter of intent on cooperation in small and medium-sized enterprise development, and a joint programme on tourism for 2016-18.

During 2013-17, two-way trade between Thailand and Sri Lanka averaged $491 million a year. Last year, bilateral trade totalled $513 million, up 8.7% from 2016.

Mrs Auramon said Sri Lanka's president will host a bilateral meeting with the Thai prime minister and officially announce the first round of FTA talks.

Do you like the content of this article?
COMMENT