Sri Lanka, B'desh to expedite development projects

Sri Lanka and Bangladesh have agreed to strengthen economic relations between the two countries by speeding up implementing long overdue projects of the Lanka-Bangladesh Joint Committee for Economic and Technical Cooperation, the Ministry of Industries and Commerce said.

Sri Lanka will also speed up implementation of last month’s MoU signed by President Mahinda Rajapaksa and Prime Minister of Bangladesh Madam Sheikh Hasina.

The Ministry said that these matters were discussed at a recent meeting between the Minister of Industries and Commerce Rishad Bathiudeen and the High Commissioner of Bangladesh to Sri Lanka Mahbub uz Zaman, when they met in Colombo.

Under the aegis of the Sri Lanka-Bangladesh Joint Committee for Economic and Technical Cooperation, the two countries have agreed to extend cooperation in the areas of small and cottage industries, air services, tourism, shipping, and cultural cooperation. The third session of the Committee was held in Colombo in 1993 and the holding of the fourth session is long overdue.

Sri Lankan products - tea, coconut, edible oil, spices and confectioneries - chocolate, biscuits, processed food items and manufactured products - prefabricated buildings, aluminium wire, cement, yarn and plastic products are some of the potential products that could be promoted in Bangladesh.

Sri Lanka can also use Bangladesh’s duty free access to international markets due to its LDC status. Some Sri Lankan apparel and textile exporters have already moved to Bangladesh to obtain maximum benefit from competitive labour costs in Bangladesh.

Sri Lankan companies have also invested in the services sector such as Banking, Hotels and Hospitals in Bangladesh, Minister Bathiudeen said.

Sri Lanka’s exports to Bangladesh have increased by 380 percent during the period 2001-2010. Total exports now stand at US $ 35.54 million. Growth in 2010 was a 36 percent increase, compared to 2009.

Sri Lanka’s major exports to Bangladesh in 2010 were dyed woven fabric of cotton, articles of plastics, narrow woven fabric, enzymes, coral and similar materials, petroleum oils and oils obtained from bituminous minerals, dye carriers, trailers and semi-trailers, printed paper and boards.

Though Sri Lanka’s imports from Bangladesh have decreased slightly from US$14.14 million in 2009 to US$ 12.60 million in 2010, the general import basket continued unchanged in 2010. The main imports were medicament 22 percent (2.8mn - the main import in 2010), followed by articles of apparel and clothing accessories, (1.5m) vegetable textile fibres (1.4m), plastics and articles (0.7m), electrical machinery and equipment (0.4m).

“Visits of business delegations are a key factor in promoting trade between the two countries and the MoU signed has further scope for increasing such visits. Trade volumes can be increased with new products through tariff preferences granted under SAPTA, SAFTA and APTA.

Market access efforts have to be supplemented with vigorous marketing/trade promotion campaigns, development of business to business networking and cooperation among private sector,” the Minister said.