Sri Lanka and Singapore sign Free Trade Agreement
Colombo, Jan 24 (IBNS): Sri Lanka has signed its first-ever comprehensive Free-Trade Agreement (FTA) with Singapore to establish itself as an economic hub in the Indian Ocean.
The Sri Lanka-Singapore Free Trade Agreement (SLSFTA), which will strengthen economic relations and boost trade between the two nations, was signed by Sri Lanka’s Minister of Development Strategies and International Trade Malik Samarawickrama and Minister of Trade and Industry of Singapore S. Iswaran, on Tuesday, in Colombo.
The signing took place in the presence of President Maithripala Sirisena and Singapore’s Prime Minister Lee Hsien Loong.
Prime Minister Lee Hsien Loong was on a three-day official visit to Sri Lanka.
The Development Strategies and International Trade Ministry in a statement said that the SLSFTA was wider than the proposed China and India agreement covering telecommunications, financial services, e-commerce and government procurement.
“To have done our first comprehensive agreement with Singapore – a country regarded as being one of the most open and liberalized economies and having high-quality institutions – is an especially important milestone for Sri Lanka,” a Ministry statement said.
While Singapore's exports to Sri Lanka include petroleum and diesel, non-monetary gold and jewellery, imports from Sri Lanka include motor spirit, fuel oils, perfumes, clothing accessories and wheat flour.
Meanwhile, Singapore’s Ministry of Trade and Industry in a news release said that Sri Lanka will -- over 15 years -- eliminate tariffs on 80 per cent of Singapore’s exports, which is likely to have a potential tariff savings of about S$10 million each year.
According to the Ministry statement, the SLSFTA has one of the most liberal rules of origin, which will allow more exports from Singapore to qualify for the lower tariffs negotiated and will also allow Singapore companies to bid for projects by several of Sri Lanka’s large central entities and state-owned enterprises.
During his visit, Prime Minister Lee had bilateral discussions and exchanged views on key regional and international developments with President Sirisena and Prime Minister Ranil Wickramasinghe.
Wickremesinghe in his tweeter message said that the SLSFTA would ‘increase exports of goods from Sri Lanka and create new job opportunities’.
(Reporting by Shanika Sriyananda)
Image: MaithripalaS/Twitter
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