Sri Lanka Free Trade Agreements List: Everything You Need to Know
Sri Lanka, a small island nation in South Asia, has been aggressively pursuing free trade agreements (FTAs) with several countries in recent years. These FTAs aim to reduce trade barriers and increase trade between Sri Lanka and its partner countries, leading to economic growth, job creation, and increased foreign investment. In this article, we will provide you with a comprehensive list of Sri Lanka`s current free trade agreements and their implications for the country`s economic development.
Sri Lanka`s Free Trade Agreements
1. India-Sri Lanka Free Trade Agreement (ISFTA)
The India-Sri Lanka Free Trade Agreement (ISFTA) was signed in 1998 and came into effect in 2000. The agreement allows for duty-free access to a list of products from both countries and has led to significant growth in Sri Lanka`s exports to India. The ISFTA is currently under revision to address issues related to non-tariff barriers and trade imbalance.
2. Pakistan-Sri Lanka Free Trade Agreement (PSFTA)
The Pakistan-Sri Lanka Free Trade Agreement (PSFTA) was signed in 2002 and came into effect in 2005. The agreement allows for duty-free access to a list of products from both countries and has led to a 4-fold increase in Sri Lanka`s exports to Pakistan. The PSFTA is currently under revision to expand the list of products and address issues related to non-tariff barriers.
3. Sri Lanka-Singapore Free Trade Agreement (SLSFTA)
The Sri Lanka-Singapore Free Trade Agreement (SLSFTA) was signed in January 2018 and came into effect in May 2018. The agreement allows for duty-free access to a list of products from both countries and aims to increase trade, investment, and economic cooperation between the two countries. The SLSFTA also includes provisions related to e-commerce, intellectual property, and government procurement.
4. Sri Lanka-China Free Trade Agreement (SLFTA)
The Sri Lanka-China Free Trade Agreement (SLFTA) was signed in 2014 and came into effect in 2018. The agreement allows for duty-free access to a list of products from both countries and aims to enhance trade and investment between Sri Lanka and China. The SLFTA also includes provisions related to services, investment, and intellectual property.
5. Sri Lanka-Thailand Free Trade Agreement (SLTFTA)
The Sri Lanka-Thailand Free Trade Agreement (SLTFTA) was signed in 2003 and came into effect in 2005. The agreement allows for duty-free access to a list of products from both countries and has led to a significant increase in Sri Lanka`s exports to Thailand. The SLTFTA is currently under revision to expand the list of products and address issues related to non-tariff barriers.
Implications for Sri Lanka`s Economic Development
The free trade agreements Sri Lanka has signed have the potential to generate significant benefits for the country`s economic development. By reducing trade barriers, these agreements can increase exports and foreign investment, thereby creating jobs and boosting economic growth. They can also help to diversify Sri Lanka`s export base, reduce the country`s dependence on a few key markets, and enhance its competitiveness in the global market.
However, these agreements also pose certain risks and challenges. Sri Lanka must ensure that the benefits of these agreements are shared equitably across different sectors of the economy and that its domestic industries are not adversely affected. It must also address issues related to non-tariff barriers, intellectual property, and e-commerce to ensure that its businesses can compete effectively with their foreign counterparts.
Conclusion
Sri Lanka`s free trade agreements with different countries provide it with a significant opportunity to grow its economy, create jobs, and increase its competitiveness in the global market. These agreements need to be implemented effectively with a focus on equitable distribution of benefits and addressing challenges that may arise. Overall, the future looks promising for Sri Lanka`s economic development with the signing of these free trade agreements.