Colombo, Sri Lanka – June 12, 2024 (LankaXpress.com) – In a significant move towards economic revitalization, the Cabinet of Ministers of Sri Lanka has approved the initiation of negotiations for a Free Trade Agreement (FTA) with Malaysia. This strategic decision, presented by the President Ranil Wickremesinghe, underscores the country’s commitment to enhancing export-oriented foreign direct investments, diversifying exports, and expanding market access for goods and services.
Malaysia, currently ranked as Sri Lanka’s 34th largest export destination, is a key player in both the Association of Southeast Asian Nations (ASEAN) and the Regional Comprehensive Economic Partnership (RCEP). In 2023, Sri Lanka’s exports to Malaysia totaled 58.3 million US dollars, reflecting a promising yet underdeveloped trade relationship.
The proposed FTA aims to build on this foundation by fostering deeper economic integration with Malaysia, whose strong and strategic economy offers considerable opportunities for Sri Lankan exporters. By removing trade barriers and facilitating smoother bilateral trade, the agreement is expected to bolster economic ties and provide Sri Lankan businesses with greater access to Malaysian markets.
The move is part of a broader strategy to stabilize Sri Lanka’s economy through increased international trade and investment. As the government looks to navigate through current economic challenges, establishing such agreements with economically robust nations is seen as a crucial step in ensuring sustainable growth and economic resilience.