Sri Lanka is preparing proposals to review and renegotiate its bilateral free-trade arrangements with India, Pakistan, Singapore and Thailand, according to current reporting citing a senior government official.
A committee appointed to examine the agreements has reportedly completed its assessment, with proposals expected to be submitted to the Cabinet.
No agreement has been cancelled or renegotiated as a result of this review at this stage.
Four trade arrangements under review
The reported review covers Sri Lanka's bilateral trade arrangements with:
- India;
- Pakistan;
- Singapore; and
- Thailand.
According to the senior government official cited in current reporting, the committee has submitted a report examining the advantages and disadvantages of the existing agreements and identifying areas that could potentially be improved.
Independent trade sources confirm Sri Lanka has trade agreements with these four partners, although the precise legal scope and structure of the agreements differ.
India agreement expected to receive particular attention
Sri Lanka and India are also expected to establish a joint working group for discussions concerning an update to their bilateral trade framework.
The India-Sri Lanka Free Trade Agreement was signed in 1998 and became operational in March 2000.
The expected discussions would provide an opportunity to consider changes to an agreement that has governed bilateral trade for more than two decades.
Other agreements
Sri Lanka's bilateral trade arrangements with Pakistan, Singapore and Thailand were concluded at different stages and have different scopes.
The reported government review is intended to consider whether changes could improve Sri Lanka's trading position under the arrangements.
Cabinet consideration expected
The review itself does not alter any trade agreement.
According to the current report, proposals based on the committee's findings are expected to be presented to Cabinet.
Any subsequent renegotiation would require discussions with the respective trading partners and completion of the applicable legal and diplomatic processes.