Strong potential for further trade between Sri Lanka and Philippines‘ – Minister Bathiudeen

The small trade value between Philippine and Sri Lanka shows that there is strong potential for further expansion of bilateral trade between the two nations. It is therefore ‘high time’ for both countries to explore new avenues in economic cooperation, says Rishad Bathiudeen, Minister of Industry and Commerce.

Minister Bathiudeen was addressing H.E Banharim Abu Guinomla, Philippines Ambassador to Bangladesh (accredited to Sri Lanka) on Thursday 28. Ambassador Abu Guinomla was making a courtesy call on Minister Bathiudeen at the Ministry premises, Colombo 3.

Expressing his keenness on further improving bilateral trade, Minister Bathiudeen said “Sri Lanka is now open for new investments from Philippines for infrastructure such as ports and airports, highways, construction such as shopping malls, and in manufacturing sector such as light engineering, pharmaceuticals, and food processing, all of which could be targeted for export markets.”

Responding to Minister Bathiudeen, Ambassador Abu Guinomla said Philippine is keen on expansion of trade, tourism and investment promotion with Sri Lanka as well. “There is promising potential for even private sector business activities between the two countries. Exchange of more business delegations between the two countries will be a step towards this” he said.

“The increase in domestic trade volume in Philippines could be advantageous for Sri Lanka as it can increase its exports to Philippines as a result. The reason for domestic trade increase is the new trends such as totally privatized air transport operations, and the recent implementation of Ro-Ro transportation (Roll-On, Roll-Off) among some key islands” Ambassador Abu Guinomla said.

The quantum of trade between our two nations is small in comparison to Sri Lanka’s trade with most other members of ASEAN. The two way trade is only about US $ 20 million. Since 2009 Sri Lanka has been able to increase its export value to the Philippines due to new contracts undertaken by us for security printing. Other main exports from Sri Lanka are rubber, apparel and precious stones. As for imports from Philippines, the value in 2010 was US $ 7.4 million. Major imports from Philippines were malt extract food preparations, Machinery, plant or laboratory equipment, and newsprint.

“Philippines can now take advantage of Sri Lanka’s new phase of economic development and we invite you to increase existing levels of trade with us” Minister Bathiudeen said.

Both countries already have an understanding on trade since 2008. With the objective of strengthening trade and economic ties between the two countries a Memorandum of Understanding between the Philippines Chamber of Commerce and Industry and Sri Lanka’s FCCISL was signed in 2008 in Manila. This MOU facilitates exchange of information, develop business contacts and to establish Business Councils in each country.

Also taking part in the discussions were Mr Tilak Kollure (Secretary, Ministry of Industry and Commerce) and Mr Bandula Somasiri (Acting Director General, Department of Commerce of Sri Lanka).

-Asian Tribune-