The Government yesterday said the impending free trade agreement (FTA) with Thailand will be inked within the first quarter of 2024, to boost exports from the country by three folds to $ 1.5 billion.

The move came following the announcement of the final round of discussions scheduled to be held on 27 and 28 June, where a delegation headed by the Thailand Trade Negotiations Department and the Sri Lankan Department of Commerce.

Speaking to journalists’ post-Cabinet meeting on Monday, Cabinet Co-Spokesman and Minister Bandula Gunawardena said both parties have agreed to complete the negotiations and prepare the relevant agreement to be signed by the first quarter of 2024.

Inking the FTA with Thailand is the first step to joining the Regional Comprehensive Economic Partnership (RCEP) trade agreement and a step towards strengthening traditional ties with the country.

Sri Lanka and Thailand initiated the proposal in 2016, and the negotiations commenced in 2018 with two rounds of discussions in the same year, whilst the third round of discussion concluded in January 2023.

He said President Ranil Wickremesinghe briefed the Cabinet on the progress of the discussions between the two countries, including the deal with trade in goods and services, investment rules, customs cooperation, trade facilitation and economic cooperation.

“The only way Sri Lanka can overcome the foreign exchange crisis and economic downturn is through boosting export earnings over time,” he added.

He said the objective of the Government is to boost exports from the current $ 550 million to $ 1.5 billion via Sri Lanka and Thailand FTA.

“Bilateral, regional and multilateral trade and investment agreements encourage boosting foreign inflows which is critical for Sri Lanka right now. These FTA are tools to boost the foreign inflows into the country to reduce the burden on the current account,” Gunawardena explained.

Source: Daily FT