FTA may boost trade between Bangladesh and Sri Lanka

Bangladesh and Sri Lanka can boost trade seven times with a free trade agreement (FTA) between the countries, Rishad Bathiudeen, Sri Lanka's minister for industry and commerce, said.

Bathiudeen spoke at the inaugural of a three-day workshop on international trade finance organised by the Sri Lanka and Bangladesh chapters of the International Chamber of Commerce, it said in a statement.

Two-way trade between the two countries increased by 67 percent to $139 million in 2013 from 2012, Bathiudeen said at the Galadari hotel in Colombo.

Bangladesh is among the top 25 export destinations of Sri Lanka, yet there is great unrealised trade potential that should be explored for mutual benefits, he said.

As both nations are members of SAFTA, APTA and BIMSTEC, faster synergy should be possible, he said in the statement. 

"South Asia has the potential to increase its trade and play a big role in global trade. Both Sri Lankan and Bangladeshi economies are expected to expand in 2015,” said Mahbubur Rahman, president of ICC Bangladesh.

Current bilateral trade between Sri Lanka and Bangladesh is at a minimal level, but it can be boosted to $1 billion, said Rahman.

The Sri Lanka-Bangladesh FTA can create a single entry point to a key regional economic bloc that includes Bangladesh, China, India and Myanmar corridor, he said.

“Trade between the two countries is becoming stronger. We are very bullish on Sri Lanka, and excited to support the initiative,” said Jim McCabe, chief executive of Standard Chartered Bank in Colombo.