Lanka, Thailand FTA to commence from Jan. 1-2025

The much awaited Sri Lanka Thailand Free Trade Agreement would be implemented by both governments from January 1, 2025 said Thai Ambassador in Sri Lanka, Paitoon Mahapannaporn during the sidelines of the Thailand

Sri Lanka Cultural Association AGM held in Colombo last week. He said all the documentation in this regard has been completed from both sides and the implementation will take place from January 1 as scheduled. This incidentally is Sri Lanka’s fourth FTA after India, Pakistan and Singapore while two more with Bangladesh and China are pending.

Currently there is a drop in bilateral trade between the two countries and this FTA will help to increase trade between the two countries and Sri Lanka entrepreneurs would have a new market to export with better tax concessions. FTA will also help to woo more investments from Thailand to Sri Lanka as well.

Thailand was Sri Lanka’s 39th export market in 2023. Total exports from Sri Lanka to Thailand in 2023 amounted to USD 47 million, representing a 20% decrease compared to 2022. Precious and semi-precious stones became the dominant export item, accounting for 52% of the value of Sri Lanka’s exports to Thailand in 2023. Other key export products included wheat or meslin flour, electrical capacitors, apparel, crustaceans, tea, activated carbon, and more. The Ambassador said that with Thailand offering free visas for tourists of many countries including Sri Lankans there is an increase in local outbound tourism. “The Thai government will continue this throughout 2024 and a termination date is not yet decided.”

It is expected that the FTA is expecting a 10% increase of exports and services from Sri Lanka to Thailand in the first year of its implementation next year. Sri Lanka Thailand Free Trade Agreement would see around 50 percent of tariff lines liberalized when it comes into force.

Source:Daily News