Sri Lanka is seeking to foster growth after its economy contracted 3.8 percent last year, according to World Bank estimates.
Thailand and Sri Lanka have signed a Free Trade Agreement (FTA), a move Sri Lanka hopes will help it emerge from its worst financial crisis in decades.
“This measure aims to improve market opportunities, with negotiations covering various aspects such as trade in goods, investment, customs procedures and intellectual property rights,” reads a statement published on Saturday by the department of media of the president of Sri Lanka.
The island nation has been renewing its focus on trade deals to spur economic growth and help its battered economy, which the World Bank estimates shrank 3.8 percent last year after a severe currency crisis plunged it into a broader financial crisis.
A delegation led by Thai Prime Minister Srettha Thavisin arrived in Colombo on Saturday to sign the FTA along with other agreements. Srettha will also attend Sri Lanka's 76th Independence Day celebrations on Sunday.
The delegation led by the Prime Minister of #Thailand Honorable. Srettha Thavisin was ceremonially received by President Ranil Wickremesinghe at the Presidential Secretariat.#DiplomacyLK @MFA_SriLanka @SLinBangkok #LKA #PMD pic.twitter.com/8d8gZLNqnz
— Sri Lanka President's Media Division – PMD (@PMDNewsGov) February 3, 2024
“This will provide huge business opportunities for both parties. We encourage our private sectors to explore the potential of two-way trade and investment,” Srettha said at a joint press conference after the signing of the agreement.
The two countries also signed a new air services agreement.
Bilateral trade between Sri Lanka and Thailand amounted to about $460 million in 2021, data from Sri Lanka's central bank showed.
Sri Lanka mainly exports tea and gemstones to Thailand and imports electronic equipment, food, rubber, plastics and pharmaceuticals.
