Lanka meets top SAARC bussinessmen in Islamabad
Sri Lanka will be meeting the highest decision makers of SAARC Trade
today for the latest round of consensus on trade aspects among the
member countries.
The Ministerial Council meeting of the South Asian Free Trade Area (SAFTA)
will be held today in Islamabad, where Commerce Ministers of all member
countries- Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan,
Afghanistan and Sri Lanka will discuss promotion of trade of goods and
services within the SAARC Region. This is the sixth SAFTA Ministerial
Council (SMC) meeting to be held under the SAFTA framework.
“The SMC is the highest decision-making body of SAFTA,” said Industry
and Commerce Minister Rishad Bathiudeen.
A special team representing Commerce Department is now in Islamabad
to attend the sessions.
“After nearly three decades of terrorism, the Sri Lankan economy has
now reached a new era where we have to have a fresh look at our
potential,” said Minister Bathiudeen.
“Sri Lanka’s growing economy, under the leadership of President
Mahinda Rajapaksa, will stand to benefit from steps towards
liberalisation of SAFTA trade just like other consumers in South Asia,”
Minister Bathiudeen said.
Minister Bathiudeen will join the Ministerial Council meetings in
Islamabad tomorrow and lead the Sri Lanka team and the discussions.
The sixth meeting of the SAFTA Ministerial Council in Islamabad will
discuss matters relating to the administration and implementation of the
SAFTA agreement and also aspects relating to trade in services under
SAFTA framework. On February 13, the sessions of the ninth meeting of
the Expert Group on SAARC Agreement on Trade in Services were held.
The meeting discussed the role of services of specific member
countries in their trade promotion efforts within the SAARC Region.
The SAFTA Agreement was signed on January 2004 during the Twelfth
SAARC Summit held in Islamabad, Pakistan. The agreement entered into
force on January 1, 2006, and the Trade Liberalization Programme
commenced from July 1, 2006. Total exports in 2011 under SAFTA
preferential tariff schemes stood at $ 1.5 billion.
According to an Asian Development Bank (ADB) study, SAFTA trade could
be strengthened to US $ 85 billion from the current level of $ 10
billion.
Calculations by independent analysts in April 2010, based on data
from the IMF statistical trends of 1996-2008 indicated that Sri Lanka’s
total projected exports to the SAARC region will top US $ 1005.95
million in 2015. By 2015 total Intra-SAARC exports are expected to cross
the US $ 17500 million mark.
According to Institute of Policy Studies Executive Director Dr Saman
Kelegama, SAFTA liberalisation will be of benefit to the SAARC region.
“Further liberalisation under SAFTA will help regional consumers
greatly, in the form of low cost products and services,” Dr Kelegama
said.
“Also, SAFTA needs to work towards liberalisation of intra-regional
investment flows so that in turn, trade will be stimulated,” Dr Kelegama
said. |