Thailand and Sri Lanka expect to sign a free trade agreement (FTA) in early 2024 as the two parties aim for three more rounds of talks this year to conclude the negotiations, according to the chief of according to the chief of the Trade Negotiations Department.
Auramon Supthaweethum, director-general of the department, speaking at the sixth round of negotiations for the Thailand-Sri Lanka FTA held from Aug 21-23 in Bangkok, said the talks have advanced beyond the halfway point. Both sides aim to conclude negotiations in 2023, paving the way for the trade ministers of both countries to sign the agreement early next year, she said.
The sixth round comprised the trade negotiating committee overseeing overall progress and seven technical working groups covering trade in goods, rules of origin, trade in services, investment, technical barriers to trade, trade remedies, and legal issues.
She said studies determined that despite Sri Lanka’s small size and population of only 22 million, it has an important geographic position in the Indian Ocean, making it a hub for maritime transport. It also possesses abundant natural resources such as precious minerals and seafood.
A Thailand-Sri Lanka FTA is projected to expand the Thai economy by 0.02%, equivalent to US$80 million. This includes the expansion of investments and the value of Thai exports to Sri Lanka.