On Saturday, a Free Trade Agreement (FTA) was signed between Thailand and Sri Lanka in an effort to increase the economic prospects and aid Sri Lanka in its difficult financial crisis recovery. According to a press statement from the media department of Sri Lanka’s President, the free trade agreement includes a number of very important areas including even investment, trade in goods, customs procedures, and intellectual property rights.
Sri Lanka’s Economic Struggles
Sri Lanka has been really trying hard to pursue trade agreements especially in an effort to boost economic growth under the worst financial crisis in decades. According to World Bank estimates, a severe foreign exchange issue that resulted in a wider financial crisis caused the nation’s economy to decline by 3.8 percent the previous year.
Srettha Thavisin, the prime minister of Thailand, led a group that travelled to Colombo to sign the free trade agreement and other documents. The two countries have come up with new aviation services agreement in addition to the FTA. Speaking positively about the agreement, Prime Minister Srettha has highlighted that it will open up important commercial potential for both nations. He urged the private sectors of both countries to investigate the possibility of two-way trade and investment during a joint press briefing following the signing.
The bilateral commerce between Thailand and Sri Lanka was estimated to be worth $460 million in 2021 based on information provided by the Sri Lankan central bank. The country also imports food, rubber, plastics, medicines, and electrical equipment but exports tea and precious stones to Thailand.
Strategic Economic Alliances for Recovery
The Free commerce Agreement is regarded as a calculated action to improve market access for both nations, offering a foundation for more investment and commerce. Both countries hope to improve their economy and overcome the obstacles presented by the current financial crises by broadening their economic alliances. An encouraging development in Thailand-Sri Lankan ties is the signing of the free trade area and the aviation services agreement, which bodes well for the country’s future economic growth and recuperation. The accords underscore how crucial international cooperation is for pushing through the intricacies of the world economy.
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