Sri Lanka invites Pakistan to identify tariff issues

KARACHI: Sri Lankan government on Wednesday invited businessmen to identify tariff issues that are impeding trade between the two countries.

Consul General of Sri Lanka in Karachi GL Gnanatheva advised businessmen, exporters and members of Pakistan-Sri Lanka Business Council of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to conduct comparative study on tariffs levied on various products to resolve grievances.

Gnanatheva said traders of both the countries should explore more varied sectors to increase the bilateral trade to its true potential. He also emphasised the need to scale up cooperation in IT sector. Foreign envoy also asked for tea and rubber related joint ventures.

Bilateral trade between Pakistan and Sri Lanka amounted to $315 million in the first 11 months of the current fiscal year, according to the State Bank of Pakistan. The bilateral trade continued to show downward trend despite a bilateral free trade agreement. According to an estimate, bilateral trade can reach $3 billion if impediments to implementation of the free trade agreement are removed.

The FTA between Pakistan and Sri Lanka was signed in August 2002 and came into effect in July 2005. The terms of the FTA were comprehensive and granted 100 percent immediate concessions to Pakistan and Sri Lanka’s major export products.

Pakistan’s exports to Sri Lanka reached $238 million in the first 11 months of the current fiscal year, while Sri Lanka’s exports to Pakistan stood at $77 million, leading to a trade surplus of $161 million in Pakistan’s favour. Both sides are rendering efforts to reactivate joint working group to resolve issues.

FPCCI President Naser Hayat said the apex trade body is committed to help business, industrial, and trade communities to capitalize on relations and geographical proximity with Sri Lanka and grow their businesses rapidly.