Bangladesh for pharma JV’s with SL
As Lanka-Bangla bilateral trade surged by 73%, the South Asian
economy is bullish on Sri Lanka’s growth prospects -and apart from
trade, wants to boost its investment levels too. “We are extremely
optimistic on Sri Lanka prospects. Bangladesh in principle, agrees to
start discussions and explore all possibilities to strengthen trade with
Sri Lanka including a Free Trade Agreement. We believe that bilateral
tariffs are very high. If an FTA with Sri Lanka is finalised, it will be
Bangladesh’ first ever FTA with any country. A Joint Working Group on
trade is now in order,” said Mohammed Shahidul Haque, the visiting
Bangladesh Foreign Secretary Ambassador to Sri Lanka yesterday, who is
leading a six member delegation to Sri Lanka.
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Mohammed Shahidul Haque, visiting
Bangladesh Foreign Secretary Ambassador with Minister of
Industry and Commerce Rishad Bathiudeen |
According to the Department of Commerce of Sri Lanka, bilateral trade
between Sri Lanka and Bangladesh has seen “improvements during the last
4-5 years.”
The total bilateral trade which was at $ 48.14 mn in 2010 has jumped
by a strong 73% in 2012 to $ 83.19 mn, showing a rapid rise in business
between the two historically friendly nations. In 2012, among the top
Lankan exports to Bangladesh were Fabrics (47% of exports-consisting of
Cotton, Knitted or crocheted fabrics), enzymes (11%), petroleum oils &
oils obtained from bituminous minerals other than crude (7%), and narrow
woven fabrics, among others. “The $ 83 mn bilateral trade volume
indicates strong and unrealised trade potential between both countries”
said Minister Bathiudeen.
“We too are looking forward to an FTA with Bangladesh, perhaps
starting with a Preferential Trade Agreement (PTA). To this end, a Joint
Working Group on trade by both countries can speed up the process as
suggested by yourself.
We also invite Bangladesh state and private sector investors to Sri
Lanka. More than $ 292 mn of Sri Lankan investments by 45 Lankan
companies are now in Bangladesh but Bangladeshi investments in Sri Lanka
is comparatively low,” Minister Bagthiudeen revealed.
Over 150,00 Sri Lankans are currently employed in Bangladesh and 45
Sri Lankan firms have invested $ 292 mn in the country in various
ventures while Bangladeshi investments in Sri Lanka (both BoI & non-BoI)
is a low $ 3 mn (only-in 6 projects) due to restrictions on capital and
current investment outflows by Bangladeshi side, which in turn has
limited the full potential of mutual investment development and
protection capacity for both countries.
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