High Commission of Sri Lanka in India

Honoured delegates

Distinguished Guests

Good afternoon.

1. It is with great pleasure and a deep sense of commitment that I participate today, to discuss the promising future of economic cooperation especially in trade, investment, and tourism, between Sri Lanka and our esteemed BIMSTEC partners. Thank you to the Ceylon Chamber of Commerce for inviting me to this session. At the outset permit me to accord all of you here, a warm welcome to the country session on Sri Lanka.

2. We are united here by a shared vision of progress and prosperity for our region, culminating in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation–BIMSTEC. It is representative of a dynamic and forward-looking group of nations, each bringing unique strengths to our collective table. Together, we undoubtedly have the potential to transform our economic landscape and build a more integrated and prosperous future.

3. Trade is the lifeblood of our nations, and it is through enhanced economic cooperation that we can unlock new opportunities and drive mutual growth. Sri Lanka, strategically located at the crossroads of major shipping routes, stands as a vital trade hub in the BIMSTEC region. By reducing trade barriers, harmonizing regulations and improving logistics, we can facilitate smoother and more efficient trade flows between our countries. It was in pursuit of this aspect that in 2004, the BIMSTEC member countries agreed to establish a framework for a free trade area. This consensus as we know has been with the objective of boosting trade and investment within the region. However, certain aspects of this framework are still being negotiated and remain incomplete. It is timely that we strive with greater resolve to have this regulatory system in place at the earliest.

4. As progress on the free trade area framework within BIMSTEC has been slow, we are now focusing on specific components including trade facilitation and mutual assistance on customs matters. With these areas being prioritized I believe that we are on a trajectory to finalize the Trade arrangement and move forward. In the meanwhile, let us build on our existing bilateral trade agreements and work towards expanding market access. By encouraging bilateral trade and investment through fostering intra–regional partnerships, we can ensure that businesses in Sri Lanka and across BIMSTEC thrive in a more interconnected and supportive environment. As a tourism and export- oriented economy, Sri Lanka is seeking to boost trade and investment relations with BIMSTEC member countries. The recently concluded FTA with Thailand which will be implemented in January 2025, the ongoing negotiations with India on Economic and Technology Cooperation Agreement (ETCA) and progressing negotiations with Bangladesh for a Preferential Trading Agreement culminating in a FTA, are initiatives Sri Lanka has taken in this direction. Efforts have been made to improve market access, and attract investments.

5. Expectedly investment is another cornerstone of our cooperation. Sri Lanka offers a wealth of opportunities for investment in sectors such as infrastructure, technology, and renewable energy in addition to tourism infrastructure and agriculture. We are committed to creating a favorable investment climate, marked by transparency, stability and robust support for investors.

Hon. Ministers & Representatives of the BIMSTEC Member States,

Secretary General of BIMSTEC

President and Director General of Confederation of Indian Industry

Distinguished delegates,

Good morning,

Permit me at the outset, to congratulate the Government of India and the Confederation of Indian Industry (CII) for organizing this timely initiative of bringing us BIMSTEC members together for the Business Summit 2024.I convey the regrets of my Minister’s inability to be present due to work commitments back home.

Ladies and Gentlemen,

The topic before us today, why the early operationalization of the BIMSTEC Free Trade Agreement will inject fresh momentum to economic integration within the BIMSTEC region, is extremely apt for consideration at this juncture together with its other relevant aspects, in achieving the objectives of regional cooperation of our mandated geographical area.    

Asia's rich history and diverse cultures have long been interconnected through trade, diplomacy and shared heritage. Our ancient maritime routes are testament to the longstanding bonds that unite us together. Sri Lanka, strategically located in the Indian Ocean, has been a significant part of these historical exchanges with BIMSTEC Member States, contributing to and benefiting from, the flow of goods, experiences, skills and cultures.

However, despite the geographical contiguity of the member states of BIMSTEC, it remains one of the least integrated regions. While the volume of intra-regional trade in comparison is insignificant at present, there is enormous scope for enhancing economic relations between the member countries.

The regional trade among BIMSTEC countries has increased from USD 4.8 billion to USD 35.96 billion from the year 2000 to 2022 respectively. Over the years, the interdependence on regional trade has increased, but the optimal trade and investment potential of the region is yet to be harnessed.

Sri Lanka is committed to working with BIMSTEC member states to enhance trade relations, investment opportunities and economic integration. By leveraging each nation's strengths and resources, we can collectively achieve sustainable growth and development in our region. Therefore, the establishment of a BIMSTEC Free Trade Agreement will undoubtedly pave the way for a more prosperous and resilient BIMSTEC area.

Even though the Bangkok Declaration of 1997 through which BIMSTEC was established, identified that one of the Grouping’s major objectives is to create an enabling environment for rapid economic development in the region, it has been unable to finalise the Free Trade Agreement. The related Framework Agreement which was signed in 2004, is one of the first legal instruments, covering the areas of tariff liberalization and elimination of non-tariff barriers, trade in services, trade and investment, and trade facilitation. Since the establishment of the Trade Negotiation Committee in the same year, it has consistently met to negotiate these areas, with the support by the Working Groups on Rules of Origin, Services, Investment, Customs Cooperation and Trade Facilitation, and Legal Experts.

Over the past 20 rounds of negotiations, much progress has been made in these sectors. While all member states have sensitivities and concerns spanning these areas, Sri Lanka is pleased to note that the negotiations have consistently engaged in a much-needed spirit of cooperation and compromise, working towards the common goal of establishing this Free Trade Area in our region.

At the Ministry of Foreign Affairs yesterday (2) Foreign Secretary Aruni Wijewardane introduced the participants for the “1^st Special Course for Diplomats and Officers from Sri Lanka” to Deputy High Commissioner of India Dr. Satyanjal Pandey and other High Commission officials.

The customized short-term training programme, intended for the latest batch of Sri Lanka Foreign Service (SLFS) officers, is offered by the Government of India. This is the first tailor-made course for Sri Lankan diplomats to be held at the Sushma Swaraj Institute of Foreign Service, New Delhi.

Deputy High Commissioner Pandey briefed the prospective course participants on the proposed programme and other arrangements. 

An initial batch of 10 new SLFS recruits as well as other officials from government agencies will attend this course from 05 -13 August 2024 in New Delhi.

Ministry of Foreign Affairs

Colombo

03 August 2024