Thailand-Sri Lanka panel to affirm ties
Thailand and Sri Lanka are establishing a joint committee to handle a strategic partnership that covers tourism, automotive, services and culture alongside trade.
Kobsak Pootrakool, the Prime Minister’s Office Minister, met yesterday with Kshenuka Dhireni Senewiratne, the Sri Lankan ambassador to Thailand, and the two parties agreed to set up a joint committee to handle the strategic cooperation.
A joint strategic partnership will speed up mutual economic benefits for the two countries faster than a free-trade agreement (FTA), which requires lengthy negotiations, Mr Kobsak said. Sri Lanka wants Thai investors in the fields of infrastructure, automobiles, hotels and construction.
Sri Lanka’s first industrial zone was set up by Thailand’s Rojana Industrial Park and should help draw Thai investment there, he said.
Rojana Industrial Park has already agreed to develop an industrial estate on 400 acres located 50 kilometres from Colombo, Sri Lanka’s commercial capital. The industrial estate aims to use the island’s location to access big markets, with free-trade deals and low labour costs to lure investors.
The export processing zone in Millaniya, Kalutara district in southwest Sri Lanka, is expected to be ready by the end of 2018 under the fast-track development programme.
Rojana, a joint venture between Japan’s Nippon Steel and Thailand’s Vinichbutr Group, is a big operator of industrial parks in Thailand’s Ayutthaya province. In Sri Lanka, Rojana will build, manage and promote the zone for enterprises to set up investments. Electricity, water and access roads will be provided by the Sri Lankan government.
Mr Kobsak said Thai investors will be able to benefit from Sri Lanka’s FTAs with China, Singapore and Japan. Sri Lanka is also in talks to expand its FTA with India.
The nation recently won back duty-free access to the European Union under the GSP Plus scheme.
Thai companies that have already invested in Sri Lanka include Siam Cement Group and Central Group.
Mr Kobsak said Thailand and Sri Lanka have pledged to speed up the FTA talks and reduce obstacles for visa on arrival in order to promote tourism.
Sri Lanka and Thailand first began considering an FTA in 2016, when Deputy Prime Minister Somkid Jatusripitak made an official visit to the island nation.
The two countries also signed a memorandum of understanding on technical cooperation, a letter of intent on cooperation in small and medium-sized enterprise development and a joint programme on tourism for the 2016-18 period.
On Feb 17 last year, Mr Somkid, who met Malik Samarawickrama, Sri Lanka’s Development Strategies and International Trade Minister, said the two countries aim to sign an FTA to triple bilateral trade to US$1.5 billion (52.5 billion baht) over the next five years.