Thailand is expediting the implementation of the Thailand-Sri Lanka Free Trade Agreement (FTA) following discussions between Deputy Minister of Commerce Suchat Chomklin and representatives from the Ceylon Chamber of Commerce in Colombo.

The FTA, signed on February 3rd last year, aims to enhance trade, investment, and tourism while reinforcing long-standing economic ties between the two nations. During the meeting, Deputy Minister Suchat highlighted Thailand’s proactive approach to FTAs as a means to diversify export markets and attract global investors. Sri Lankan business leaders expressed optimism that the agreement would reduce trade barriers, particularly benefiting key Sri Lankan exports such as tea, desiccated coconut, spices, and minerals through tariff exemptions. Additionally, Sri Lanka is seeking Thailand’s expertise in agriculture, finance, and SME development.

Beyond trade and investment, the agreement is expected to foster bilateral tourism and cultural exchanges. Sri Lanka, Thailand’s fourth-largest trading partner in South Asia, recorded a total trade value of $438.7 million in 2024. Thai exports amounted to $313.7 million, including rubber, gemstones, textiles, plastic resins, and chemicals, while imports from Sri Lanka, worth $124.99 million, mainly comprised precious stones, gold, garments, electrical machinery, and chemicals. Thailand currently holds a trade surplus of $188.72 million with Sri Lanka.

To support Thai businesses, the government has introduced low-interest loans via the Export-Import Bank of Thailand and SME D Bank to assist SMEs in expanding internationally. The discussions also addressed Sri Lanka’s interest in financial and banking support for international trade. Deputy Minister Suchat encouraged Sri Lanka’s private sector to collaborate with their government to expedite the FTA’s enforcement for shared economic benefits.

Source and Photo Cr.: NBT World, Thailand