Trade with Palestine should be revived - Minister Bathiudeen

Bilateral trade between Sri Lanka and Palestine should first be revived, before launching FTAs with the virgin market of Palestinian territories.

"FTA with Palestinian territories is a good idea but it is too early due to the non-existence of trade between the two countries," said Industry and Commerce Minister Rishad Bathiudeen when he was interviewed by Ms Mai Bakry of 'Palestin TV' in Colombo recently.

"Sri Lanka has entered a new era of economic development. We are now a lower middle income country focusing on developing as a commercial hub in this region," he said.

"Sri Lanka and the State of Palestine have maintained cordial relations over the years. The recent visit of President Mahinda Rajapakse to Palestine has further enhanced and strengthened relations between the two countries," the Minister said adding "Bilateral trade, between the two countries is low and almost negligible. There is strong unrealised trade potential at both ends."

"Exports are low at only $ 0.02 million with no imports from Palestine. Our exports to Palestine are only yarn and vegetable oil," he said.

"I discussed creating a 'Sri Lanka-Palestine Joint Investment Forum' to increase bilateral trade when I met Palestinian Tourism Minister Dr. Ms. Khuloud Daibes, in April 2012 in Colombo. We can set up such a mechanism which is the starting point for both partners," Minister Bathiudeen said.

"There are many opportunities in Sri Lanka for the Palestinian business community, in trade and investment.

Opportunities are also available under the Indo-Sri Lanka Free Trade Agreement and Pakistan-Sri Lanka Free Trade Agreement," he said.

"My ministry will provide support and assistance to investors from Palestine.

One-hundred percent ownership for Palestinian investments is also ensured. Palestinian investments in Sri Lanka are guaranteed by the Constitution as well," the Minister said.