SRI LANKA COMMITTED TO FTA, SAYS PM
It will give Malaysian products, services better access
PRIME Minister Datuk Seri Najib Razak is confident that the free trade agreement (FTA) between Malaysia and Sri Lanka will be finalised soon.
This followed Najib’s meeting with President Maithripala Sirisena here yesterday.
Najib said the FTA was one of the key issues discussed during the meeting, which was followed by bilateral talks with delegations from both countries.
“Among the focus of the discussions was the commitment reiterated by both countries to finalise the FTA negotiations, which had been agreed upon during Sirisena’s official visit to Malaysia (last December),” Najib told the Malaysian media here yesterday.
“He was hopeful that the negotiations will continue until the FTA is finalised.”
Najib, who thanked the Sri Lankan government for its warm welcome and hospitality, said one key benefit of the FTA was better market access for Malaysian products and services.
This will bode well for local products, including palm oil and oil products, which are facing restrictions in regard to duties.
“We hope the negotiations can be concluded soon. There is commitment from Sri Lanka to resume talks.”
Najib and Sirisena also discussed the trade imbalance between the two countries.
“Malaysia exports 10 times more than what Sri Lanka exports to our country. Sri Lanka hopes we can buy more of its products and services.”
Malaysia exported US$579.9 million (RM2.37 billion) of products last year, while total imports from Sri Lanka stood at US$59.2 million.
Malaysia is the fourth largest foreign investor in the island country, with more than US$3 billion poured into 47 projects that had created 8,335 jobs.
Axiata Group Bhd, through its subsidiary Dialog Axiata Plc, is Malaysia’s largest investor here with US$2.2 billion spent.
On his meeting with more than 30 of Sri Lanka’s captains of industry, Najib said they were keen to start, or enhance business ties
with Malaysia.
This included the prospect of increased imports of Sri Lankan tea into Malaysia and participation in the latter’s digital free trade zone.
On the issue of licence renewal involving Dialog Axiata Plc, the largest telecommunications company in Sri Lanka owned by Axiata Group Bhd, Najib said it would be resolved soon.
Najib was optimistic about the prospect, saying that he and Sirisena had agreed to form a four-member committee to resolve the issue. Each country would have two representatives in the committee.
“President Sirisena has proposed the setting up of a committee involving two representatives from Sri Lanka and two from Malaysia to address the issue.
“I believe there is light at the end of the tunnel,” said Najib, who is on a three-day official visit here.
He said he would consult with the International Trade and Industry
Ministry on Malaysia’s representatives.
“I have informed (Axiata Group president) Tan Sri Jamaludin Ibrahim and he understood what should be done.”
It is learnt that Dialog Axiata, which has 12.7 million subscribers up to September, has failed to get its licence renewed for the past 30 months.
The impasse is hampering the company’s expansion plan.
Najib said Dialog Axiata had plans to invest up to US$300 million to expand its services in Sri Lanka.
The company had invested US$2.2 billion, making its parent company, Axiata Group Malaysia, the largest investor in Sri Lanka.
It is learnt that Dialog Axiata had approved a budget of US$196 million to enhance its mobile data and digital services.
The company, via Dialog Broadband Networks, is prepared to spend another US$100 million to expand its integrated transmission and fixed LTE (4G) network.