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.

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.