Thailand and Sri Lanka signed a FTA to boost trade, expand to South Asia, and cooperate on clean energy and more.
Thailand and Sri Lanka Sign Free Trade Agreement to Enhance Bilateral Trade
- Thailand and Sri Lanka signed a free trade agreement aimed at enhancing market opportunities and fostering economic growth for both countries.
- The FTA covers trade in goods, investment, customs procedures, and intellectual property rights, providing tremendous business opportunities for the private sectors of both nations.
- The agreement is expected to benefit Thailand’s exports of automotive parts, textiles, electrical appliances, machinery, steel products, paper, processed food, and animal feed, while also promoting liberalized air services between the two countries.
Thailand and Sri Lanka officially signed a free trade agreement (FTA) in Colombo, with the aim of strengthening bilateral trade. Prime Minister Srettha, who was present at the signing, stated that this FTA is the second of its kind between the two countries.
In his Facebook post, he also mentioned that the Free Trade Agreement (FTA) will enable Thailand to broaden its trade to other markets in South Asia, while offering Sri Lanka the opportunity to utilize Thailand as a base for enhancing trade with other ASEAN countries.
Opportunities for Thai Companies to Utilize Sri Lankan Infrastructure and Tax Privileges
Given that many Thai companies are already operating in Sri Lanka, the prime minister highlighted that the FTA will create the opportunity for these companies to make use of Sri Lanka’s infrastructure and tax benefits to expand their trade to other nations. Additionally, the agreement on air travel services and the potential for visa-free travel between the two countries are expected to promote air travel and further enhance trade relations.
Cooperation in Clean Energy, Maritime Security, and Fishing Industry Development
Moreover, Thailand and Sri Lanka have agreed to collaborate on clean energy, maritime security, and the development of the fishing industry in Sri Lanka. Thai Airways International will also be launching its inaugural flight between Bangkok and Colombo on March 31st, further strengthening the ties between the two nations.