Sri Lanka defends proposed Free Trade deal with China

**By APD Writer Easwaran Rutnam **

Sri Lanka on Monday defended a proposed Free Trade Agreement with China and

insisted that it will not have a negative impact on local industries.

Industry and Commerce Minister Rishad Bathiudeen said the FTA with China will

be designed keeping the local industry concerns in mind.

He also said that Sri Lanka will hold comprehensive discussions on the FTA

with local industrialists representing various sectors.

“We will not allow local industries and employment to be hit by any Free

Trade Agreements,” Minister Bathiudeen said while addressing local

industrialists who gathered at his Ministry for discussion.

Industrialists from footwear, electrical and electronic products,

pharmaceuticals, cosmetics, rubber, wood, automotive components, boat building,

processed food and packaging attended the meeting.

According to the Department of Commerce of Sri Lanka, in the five year period

of 2012 to 2016, Chinese imports to Sri Lanka surged by a strong 67% (from

2012’s $2.56 Bn).

Even on a Year on year basis, Chinese imports in 2016 increased by 15% to US

$ 4.27 Bn from 2015’s $3.73 Bn. Among the leading imports from China to Sri

Lanka in 2016 were mobile phones, light-vessels and dredgers, semi-finished iron

/ non-alloy steel products, automatic data processing machines, fertilizers,

projectors, and net fabrics.

Bathiudeen assured that his Ministry, with the Cabinet Committee on Economic

Management (CECM) will consult all relevant industries before inking the

pact.

Thanking the industrialists for bringing these issues to his attention he

also directed five of his top officials to commence a rapid assessment of all

industries on the China FTA and report back to him within two weeks.

(ASIA PACIFIC DAILY)