Malaysia Explores Possibility Of Clinching FTA With Sri Lanka

From Nurunnasihah Ahmad Rashid COLOMBO, May 5 (Bernama) -- Malaysia will explore the possibility of clinching a free trade agreement (FTA) with Sri Lanka in efforts to take bilateral ties to a significantly higher level, said Minister of International Trade and Industry, Mustapa Mohamed. Mustapa, who is leading a 44-member trade and investment mission to India and Sri Lanka from May 1-7, said he would bring up this issue at the Cabinet meeting when he returns to Malaysia. "There are lots of complementaries and opportunities in trade and business as well as investments between Malaysia and Sri Lanka to explore," he said during a meeting with Sri Lanka's Minister of Development Strategies and International Trade, Malik Samarawickrema and Minister of Industry and Commerce, Rishad Bathiudeen, here Thursday. Also present were Malaysian High Commission Second Secretary/Head of Chancery, Azhar Mat, Malaysian Investment Development Authority (MIDA) Deputy Chief Executive Officer II, N. Rajendran, and Malaysia External Trade Development Corp (Matrade) Senior Director Strategic Planning Division, Wan Latiff Wan Musa. He said Sri Lanka was a promising market for Malaysia as both countries shared similar cultural and geographical linkages. "We should be working more closely now so as to boost economic ties in the future," he said, adding that Malaysian companies were keen to do more business and forge partnerships in Sri Lanka. Meanwhile, Samarawickrema said, Sri Lanka would like to gain experience from Malaysia in terms of social-economic infrastructure in view of the successful economic transformation spearheaded by the Performance Management and Delivery Unit, which now has a presence in South Africa and Tanzania. "We would also like to invite Malaysian companies to have collaborations with us in the tourism and transportation sectors such as building up the private education institutions," he said. Bathiudeen said both countries needed to work hard together to explore the potential opportunities especially between each other's private sectors. Last year, Sri Lanka's exports to Malaysia amounted to US$35 million (US$1 = RM4.00) while imports stood at US$512 million. He said the major imports included animal or vegetable fats and oils, machinery and mechanical appliances and wood and articles of wood while export products comprised rubber and rubber products, apparel and clothing, coffee, tea; and, spices. The mission, organised by MIDA and Matrade, comprises small and medium enterprises which are keen on seeking opportunities in the South Asian nation. --BERNAMA