Let’s boost Turkey trade!

OECD growth economy calls for Bilateral Investment Pact with Sri Lanka

• Looking for Construction, Agri investments
• ‘Such a Pact will open the door for our investors’– (HE) Amb. Okyay
• ‘Good-let’s also boost trade’-Rishad
• YoY Bilateral trade up by huge 34%

In its first ever national level investment push on Sri Lanka, the fastest growth economy in the powerful OECD grouping called on 13 February for a bilateral investment protection treaty for the first time-and Sri Lanka’s bilateral trade with this easternmost economy of NATO is rising steadily. “Many Turkish companies are interested in Lankan infrastructure projects! We can first formulate a bilateral Investment Protection Agreement after which Turkish investments will start to flow here” said (HE) Iskender Okyay (Ambassador of Turkey in Colombo) on 13 February.

(HE) Ambassador Okyay was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 13 February at EDB, Colombo.

“Many Turkish companies are interested in Lankan infrastructure projects, amongst them are some leading Turkish firms. Specially, Turkey is internationally reputed for its construction firms” said (HE) Ambassador Okyay, and added: “I am very happy to bring Turkish construction firms here! In fact many of them are eager and ready to come here and partner with Sri Lankan firms. Also Turkish agricultural firms. We can first formulate a bilateral Investment Protection Agreement after which Turkish investments will start to flow here. We can enter into the agreement during the forthcoming Joint Economic Cooperation between both countries for which we expect you to propose dates so that we can prepare.”

Turkey ranks 28th in the world on international investment agreements with 107 of which 89 are bilateral. It also has Investment Protection Treaties with 74 countries. Turkey was the world’s fastest growing economy in 2010-’11 beating the global recession. Considered as the Easternmost NATO power in the world, it is also expected to be the fastest growing economy within OECD (Organization for Economic Co-operation and Development) group till 2017.

“We thank for Turkey’s on-going assistance to Sri Lanka” said Minister Bathiudeen, responding to (HE) Ambassador Okyay, and added: “I am also pleased to note that bilateral trade has been on the rise with balance of trade in favour of us! In 2014, our bilateral trade increased by a strong 34% to $311 Mn but I believe that there still are unrealised trade potentials that we need to explore!  It is time that we enhance cooperation in other aspects as well and to energise the Agreement on Economic and Technical Cooperation between Sri Lanka and Turkey that came into effect in 2007. Therefore it is time for us to hold another round on the Joint-Commission in this regard and I have instructed my Department of Commerce to find suitable dates for the meetings, about which they will get in touch with you soon. We can formulate the Bilateral Investment Treaty during the forthcoming talks! We welcome your interest to invest in Sri Lankan construction sector. Economic development is a fundamental principle of the 100 day program of HE the President Maithripala Sirisena and Hon Prime Minister Ranil Wickremesinghe and joining with international partners to develop our sectors, including construction, is most welcome in this regard. Therefore I warmly welcome Turkish investors to partner in our construction sector –we value not only the FDIs but also their tech transfer to Sri Lanka.”

Sri Lanka’s trade with Turkey has been increasing for the last several years. The value of total trade turnover has increased from US$ 97.4 Million in 2005 to US $ 311 Million in 2014. The 2014 total trade is an increase of 34% from 2013’s $232 Mn.

Both Minister Bathiudee and (HE) Ambassador Okyay also discussed other matters of bilateral cooperation during the 13 February discussion.