Guide to Traders on FTAs

Sri Lanka is currently a member country of two bilateral free trade agreements, one with India and the other with Pakistan. In addition to that Sri Lanka is also a member of two regional trade agreements; South Asian Free Trade Area (SAFTA) and Asia Pacific Trade Agreement (APTA).

Sri Lanka is a beneficiary country of unilateral preferences granted by a number of developed countries such as the European Union and the United States generally known as GSP (Generalized System of Preferences).

Unfortunately, it is widely acknowledged that Sri Lankan traders still does not make the best use of the concessions available.

The general feeling is that there is plenty of scope to improve utilization of these concessions by traders. Sri Lanka being a relatively high cost manufacturing destination, exporting under preferential tariffs will help improve cost competitiveness of Sri Lanka.