Lanka-Bangladesh trade crosses $ 100 m mark

With bilateral trade between Bangladesh and Sri Lanka crossing the US $100 million mark, Bangladesh is keen to set up an investment protection mechanism to drive trade volumes to the next level.

"Fundamentals would be right for Bangladeshi investors exploring the possibility of investing in Sri Lanka if an investment protection mechanism was in place and it would help drive bilateral trade," High Commissioner of Bangladesh Sufiur Rahman told a meeting at the Export Development Board last week.

Sri Lanka has signed bilateral Investment Protection Agreements (IPAs) with 28 countries. Around 15,000 Sri Lankans are employed in Bangladesh and 45 Lankan firms have invested $ 292 million in the country in various ventures while Bangladeshi investments in Sri Lanka (BOI and non-BOI) is around $ 3 million (in six projects).

Restrictions on capital and investment outflow in Bangladesh, is one of the limiting factors contributing to the non-achievement of the full potential of investment and protection for both countries.

"When I was in Dhaka recently, I informed Bangladeshi investors such as pharma manufacturers to explore not only trade opportunities with Sri Lanka but also the positive investment climate here. Invest in Sri Lanka and create a market share here so that you don't have to compete with other regional suppliers to Sri Lanka," said Rahman.

"For this, we need to have investment-related agreements such as an Investment Protection Agreement. We are now jointly working on a draft and there are some other elements that need to be incorporated before it's finalised. For instance, there is a huge potential for the Bangladeshi pharma sector here and their investments in Sri Lanka will also benefit the Lankan consumer," he said.

"Fundamentals would be right for Bangladeshi investors with such an investment protection agreement. And this would drive forward our bilateral trade as well," said the High Commissioner.

"I thank you for accepting our invitation to take part in a trade meeting in Dhaka later this year," he said.

Industry and Commerce Minister Rishard Bathiudeen said, "We now observe a three-fold increase in bilateral trade since you arrived in the country. On the investment side too there is much potential."

"We invite Bangladeshi manufacturers to set up facilities for value-added exports in the sub sectors of rubber, PVC products, cement, minerals, metal, transport equipment, gem and jewellery, electrical and electronic equipment, ceramic, paper, leather, chemicals, pharmaceutical, boats, food, tea, wood and coir," he said.