SA wants joint council to boost trade with Sri Lanka

Saudi Arabia, the Arab world's largest economy, wants a joint council to boost trade ties with Sri Lanka. "It would be necessary to complete appropriate procedures for forming a joint Council for 2003 agreement"

Deputy Minister for Foreign Trade of Kingdom of Saudi Arabia, Dr. Mohammed H. Al-Kathiri.

Dr. Al-Kathiri told Minister of Industry and Commerce, Rishad Bathiudeen, at the Sri Lanka- Saudi Arabia bilateral session held on the side lines of the 13th Ministerial Meeting of UNCTAD General Assembly Session at the Qatari National Convention Centre, Doha, Qatar.

Minister Bathiudeen, apprising Dr. Al-Kathiri, said: "Relevant officials of both countries should pursue appropriate action to promote bilateral relations under the general agreement on Economic, Trade, Investment, Scientific, Technical, Culture, Youth and Sports Cooperation signed in December 2003. The agreement has paved the way for new areas of cooperation."

Dr. Al-Kathiri said "The two sides initiated early steps for effective implementation of the 2003 Agreement. It would be necessary to complete appropriate procedures for forming a joint Council for 2003 agreement."

Minister Bathiudeen said, "There are also investment opportunities that are open in Sri Lanka in its upswing. The main sectors are tourism, infrastructure, construction, industry, IT/BPO and apparel." Both Ministers, having observed the current level of bilateral trade between Sri Lanka and Saudi Arabia agreed that there was potential to grow further, and discussed various options available for enhancing bilateral trade.

According to the Department of Commerce of Sri Lanka, the overall value of Sri Lanka - Saudi Arabia trade currently stands at $ 142m. In 2011, Sri Lanka's exports to Saudi Arabia stood at $62m while Sri Lanka's imports amounted to $79m.

Among the main export items from Sri Lanka to Saudi Arabia are tea, edible fruits and nuts, apparel and clothing accessories, rubber and related articles, edible vegetables and certain roots and tubers, paper and paper board, articles of paper pulp, miscellaneous edible preparations, inorganic chemicals while primarily import being mineral fuels and mineral oils.