Pakistan-Free Trade Agreement with Sri-Lanka.

PAKISTAN-FREE TRADE WITH SRI-LANKA.

Sri Lankan exporters now enjoy duty free access for about 4,000 products to the Pakistan market under the final phase of trade liberalization of the Pakistan-Sri Lanka Free Trade Agreement.

This follows Export Development and International Trade Minister Prof. G. L. Peiris having discussions with Pakistani authorities.

The Government of Sri Lanka and Pakistan have concluded the Free Trade Agreement in 2002 that came into force from June 12, 2005.

The main objective of the bilateral agreement was to develop further the economic relations between Sri Lanka and Pakistan through expansion of trade in Goods, Services and Investment relations.

At the implementation of this Agreement, Pakistan granted immediate duty free access for Sri Lankan products such as Tea (under a Tariff Rate Quota - TRQ), Betel leaves (TRQ), coconut products, natural rubber, spices, paper boards, articles of aluminum and natural graphite.

The final phase of liberalization will provide duty free access for an additional 4,000 products such as fish and meat products, vegetable and vegetable products, foliage and plants, sugar and sugar confectionery (biscuits), pastry and cakes, mineral products, fiber boards, leather and leather based products, footwear, gems and jewellery, value added copper products, electrical apparatus, printed circuits, bicycles, boats and floating structures.

Pakistan has become the second largest trading partner for Sri Lanka in the South Asian region.

The total trade between the two countries increased from Rs. 16 billion (US$ 159 million) in 2005 to Rs. 30 billion (US$ 270 million) in 2008. Sri Lanka’s exports to Pakistan also increased from Rs. 4 billion (US$ 43 million) in 2005 to Rs. 8 billion (US$ 71 million) in 2008 recording a 100 percent growth in rupees terms during the four-year period benefiting from the concessionary access made through the FTA.