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By Channa Kasturisinghe

The Government will consider multiplying hitherto lean import figures from USA, thereby creating a healthy trade balance between the two countries in a bid to strengthen trade ties between the two countries, Commerce and Consumer Affair Minister, Ravi Karunanayake told the media yesterday.

He said although Sri Lanka's export figures to USA are considerably high the poor import figure is one of the constraints in further increasing our exports to the country where there is much potential to market our products, especially garments.

Minister Karunanayake who accompanied Minister, Prof. G.L Peris on a recent visit to USA to discuss the proposed Free Trade Agreement (FTA) with the Government of USA, said that there will be more service oriented products imported from the USA in the future while Sri Lanka will be focusing on exporting more manufacture-based products.

"Our exports to USA last year were US$ 2,100 million while we imported only US$ 189 million worth US products which is not a healthy trade balance by any means. The Government's focus on increasing imports from USA, would make it easier for Sri Lanka to gain favourable treatment from the US when the quota facility under the Multi-fibre Agreement is phased out in the next couple of years. Our delegation was successful in convincing the US authorities that Sri Lanka has a healthy environment for investment and would be a better trading partner especially with a devaluing currency. So far only Singapore and Chile have signed Free Trade Agreements with the USA and we expect to become the third country at least in another year," Minister Karunanayake said.

Committee to strengthen campaign

He said that his Ministry would set up a Committee headed by the Ministry Secretary Harsha Wickremasinghe to help the Government to strengthen its campaign in establishing healthy trade ties with USA.

"In fact Prime Minister, Ranil Wickremesinghe himself will discuss the matter in this regard with US authorities on his visit scheduled for next September," he said.

The Minister also said that some of leading companies in USA, Japan and other countries have already agreed to set up manufacturing plants in Sri Lanka.

Aircraft maintenance

Among them are vehicles manufacturing companies including Zuzuki and Toyota. Yamaha Musical instrument manufacturers are also considering investing in Sri Lanka. There are opportunities for us to venture into aircraft maintenance with a reputation as a service providing country," the Minister said.

Mohamed Mustafa shopping mall here

He said that Singapore's leading Mohamed Mustafa group has also expressed their willingness to invest in Sri Lanka on a grand scale shopping mall. A delegation representing the company will arrive in Sri Lanka next Saturday to discuss the arrangements of setting up the shopping mall.

Minister Karunanayake also said that a Government team will visit India on May 20 to discuss amendments to the Indo-Sri Lanka Free Trade Agreement that was signed during the previous regime.

Certain statements of the FTA are not favourable as far as Sri Lanka is concerned and there is a need to amend the agreement to make it more fair by our country. We should amend the areas which affect local manufacturers and introduce statements which would provide them more access to the Indian market," Minister Karunanayake said.

He said Sri Lanka will soon sign a FTA with Pakistan to strengthen trade ties between the two countries. 

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