Strong potential for further trade between Sri Lanka and Philippines - Minister Bathiudeen

The small trade value between the Philippines and Sri Lanka shows that there is strong potential for further expansion of bilateral trade between the two nations. It is therefore 'high time' for both countries to explore new avenues in economic cooperation, said Industry and Commerce Minister Rishad Bathiudeen.

Minister Bathiudeen was having discussions with Philippines Ambassador to Bangladesh (accredited to Sri Lanka) Banharim Abu Guinomla on Thursday. Ambassador Abu Guinomla was making a courtesy call on Minister Bathiudeen.

Expressing his keenness on further improving bilateral trade, Minister Bathiudeen said "Sri Lanka is now open for new investments from the Philippines for infrastructure such as ports and airports, highways, construction such as shopping malls, and in manufacturing sector such as light engineering, pharmaceuticals, and food processing, all of which could be targeted for export markets." Ambassador Abu Guinomla said Philippine is keen on expansion of trade, tourism and investment promotion with Sri Lanka as well. "There is promising potential for even private sector business activities between the two countries. Exchange of more business delegations between the two countries will be a step towards this," he said.

"The increase in domestic trade volume in the Philippines could be advantageous for Sri Lanka as it can increase its exports to the Philippines as a result. The reason for the domestic trade increase is the new trends such as totally privatized air transport operations, and the recent implementation of Ro-Ro transportation (Roll-On, Roll-Off) among some key islands", Ambassador Abu Guinomla said.

The quantum of trade between the two nations is small in comparison to Sri Lanka's trade with most other members of ASEAN. The two way trade is only about US $ 20 million. Since 2009, Sri Lanka has been able to increase its export value to the Philippines due to new contracts undertaken by us for security printing. Other main exports from Sri Lanka are rubber, apparel and precious stones. As for imports from the Philippines, the value in 2010 was US $ 7.4 million. Major imports from the Philippines were malt extract, food preparations, machinery, plant and laboratory equipment, and newsprint. "The Philippines can now take advantage of Sri Lanka's new economic development phase and we invite you to increase existing levels of trade with us" Minister Bathiudeen said.