Korea to enhance trade and investments with Lanka

Korea looks forward to strengthening trade, economic and investment relationship with Sri Lanka and setting up a Joint Working Group, Korean Ambassador Won-sam Chang told Industry and Commerce Minister Rishad Bathiudeen when he paid a courtesy call at the Ministry of Industry and Commerce, Colombo 3 recently.

Director General, Department of Commerce, R D S Kumararatne was also present.

Sri Lanka has Double Taxation Avoidance and Investment Protection Agreements with Republic of Korea. In April 2012, three MoUs were signed between the Republic of Korea and Sri Lanka during President Mahinda Rajapaksa's visit to Korea.

The three MoUs covered economic and technical co-operation, information technology and power and energy. Korea also pledged to renew the $ 200 million financial and technical assistance to Sri Lanka.

Bilateral trade between Sri Lanka and Korea stood at $ 377 million in 2013 and it has been growing over the past few years.

Sri Lanka's exports to Korea increased by 78% to $78.6 million in 2013 from $ 44 million in 2012.

Total bilateral trade rose to $ 377 million in 2013. South Korea's per capita income has registered a continuous increase to $33,100 levels and is close to the per capita levels of such economies as France and Japan. According the BoI, by the end of 2012, 80 Korean investment projects to the value of $ 58.21 million were in operation in Sri Lanka.

Minister Bathiudeen said, “Since we set up diplomatic ties with Korea in 1977, bilateral relations have improved and is multifaceted today. We want to further strengthen our trade, economic and investment relationship. Bilateral trade between Sri Lanka and Korea stood at US$ 377 million in 2013 and is growing.”“The trade balance is in favour of Korea. Exports from Sri Lanka also show a remarkable growth over the past three years and in 2013 we exported goods worth $ 78 million to Korea while our imports stood at $ 299 million,” Bathiudeen said. “Korea and Sri Lanka should explore the possibility of setting up a Joint Commission on Trade and Economic Co-operation (JEC) which would facilitate more inter-governmental mechanisms between the two countries,” the Minister said.

“A JEC with Korea could be the initial step towards setting up a Sri Lanka-Korea FTA and the more than one billion Indian and Pakistani markets for Korean manufacturers through Sri Lanka's FTAs (ISFTA and PSFTA), with them,” he said.

Ambassador Chang said, “Our bilateral relations have become multifaceted. We need to further strengthen our trade, economic and investment relationship with Sri Lanka. We welcome your suggestion of a Joint Working Group.”

“I invite you to visit Korea in the near future with a strong Lankan delegation and meet your counterpart Minister in Korea to discuss setting up the Joint Working Group, which will help in more bilateral trade between the two countries. Sri Lankan migrant workers make a strong contribution to the Korean economy,” he said.