Bangladesh feasibility studies completed’

‘FTA can boost trade to $1B’-B’Desh

• ‘Feasibility studies completed’–Rishad
• Biggest B’Deshi biz delegation in Colombo
• ‘Trying to get an FTA’-Rahman, B’desh ICC
• ‘Consult before financial consolidation’-Rishad
• Bilateral trade rises by 67%

An FTA between Sri Lanka and Bangladesh could boost current trade levels by seven-fold while Sri Lanka, on its part, says the feasibility studies have now been completed, as revealed on 13 February-and the biggest ever business delegation to arrive in Sri Lanka from Bangladesh is  told that financial sector consolidation should be done with care. “I am pleased of the success of first meeting of the Bangladesh-Sri Lanka Joint Working Group (JWG) on Trade in Dhaka last year. To identify ways and means of enhancing Sri Lanka and Bangladesh bilateral trade, the Feasibility Study on establishing a Framework Arrangement has been completed. Consolidation efforts of finance and banks need to be done with wider consultation” announced Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 13 February in Colombo.

Minister Bathiudeen was addressing the inaugural event of the workshop on International Trade Finance jointly organised by International Chamber of Commerce chapters of Sri Lanka and Bangladesh at Galadari Hotel, Colombo on 13 February. Joining the event were a 107 member strong banking and industry delegation from Bangladesh led by Mahbubur Rahman (President of International Chamber of Commerce of Bangladesh), reps from Sri Lankan banking and business chambers, Keerthi Gunawardane (Chairman of ICC Sri Lanka), Tissa Jayaweera (Immediate Past Chairman of ICC Sri Lanka), RDS Kumararatne (DG-Department of Commerce), Ataur Rahman (Secretary General, ICC Bangladesh) and Jim McCabe (CEO, Standard Chartered Bank, Colombo).

“Bangladesh was the 25th export destination of Sri Lanka in 2013. Bilateral trade between the two countries increased by 67% in 2013 to US$ 139 Million from 2012’s US$ 83 million. This also shows that there are great unrealized trade potentials that we need to explore for mutual benefits. This is why I am pleased of the success of first meeting of the Bangladesh-Sri Lanka Joint Working Group (JWG) on Trade in Dhaka last year. To identify ways and means for enhancing Sri Lanka and Bangladesh bilateral trade the Feasibility Study on establishing a Framework Arrangement has now been completed.  Also both our nations are members of SAFTA APTA and BIMSTEC. Therefore I am sure that you would agree that we can synergise faster in this regard” said Minister Bathiudeen and added: “This is the largest such delegation to arrive in Sri Lanka from Bangladesh in recent times. It is very clear to us of the high importance placed by Bangladesh on relations with Sri Lanka. Therefore I have no doubts that this is also a new chapter in our centuries old trade and business cooperation efforts. I am aware that there are 107 bankers and industry delegates from Bangladesh are present here today. This will be an ideal opportunity to not only to introduce and network with Lankan sectors but even to form partnerships for mutual benefits in a free and new Sri Lanka under the leadership of our HE the President Maithripala Sirisena and Hon Prime Minister Ranil Wickremesinghe. Your visit takes place not only at an important time in our history it also takes place in a background of developments in banking and micro finance. An important current development in our banking sector is the reviewing by HE the President Maithripala Sirisena in his 100 day program of the proposed changes to integrate Sri Lanka’s finance companies and banks. We believe that such consolidation efforts need to be done with wider consultation of stakeholders and if not, sectoral issues could arise. The other commendable development is to set up an institution to regulate and develop Sri Lanka’s micro-finance sector helping our SME sector.”

In 2013, Sri Lanka’s major exports to Bangladesh were cotton, knitted fabrics, and enzymes while major imports were medicaments, apparel and potatoes.

Mahbubur Rahman, President of International Chamber of Commerce of Bangladesh, addressing the event, said: “Sri Lanka and Bangladesh have a close affinity. South Asia has the potential to increase its trade and play a big role in global trade. Both Sri Lankan and Bangladeshi economies are expected to expand in 2015. Current bilateral trade is at minimal level but there is potential towards $1 Billion trade. Therefore we are trying to get an FTA. Such an FTA would be the first FTA for Bangladesh and for Sri Lanka it’s a huge opening it would open a single entry point for an important regional economic corridor-the BCIM economic corridor (Bangladesh, China, India, and Myanmar corridor).”

Jim McCabe (CEO, Standard Chartered Bank, Colombo), addressing the event, said: “We are excited to support this initiative. Trade between the two countries are becoming stronger. We are very bullish on Sri Lanka.”