Monday, October 12, 2020

Australia-Sri Lanka strengthen bilateral trade and explore new trade opportunities

 


Australian Commissioner David Holly and Chairman of the Export Development Board Prabhash Subasinghe recently met at Australia House Colombo to discuss the way forward in improving bilateral trade ties, consistent with the new government's vision. Australia has been recognised as the largest market in the Oceania region as an economically important country for Sri Lankan exporters to discover new opportunities in both product and service sectors. Also discussed in detail at the start was the post-COVID situation and actions taken to propel the economy.

The Chairman of the EDB highlighted ongoing export promotion initiatives in the recent past and the untapped opportunities available in Australia. During the discussion, it also revealed that the Australian Trade Commission (AUSTRADE) considered organising the mutual benefits for both countries based on proposals submitted by the EDB, a Business Forum, and B2B Meeting Sessions for the Seafood Sector.

Opportunities to promote Sri Lanka as a logistics hub for Australian manufacturing firms also discussed with the possibility of holding a meeting for Sri Lankan commercial hub operators with Australian business people. Highlighting that the ICT / BPM sector is one of the most critical sectors in the category of export services, it noted that further promotion was needed to endeavour to achieve full potential.

The High Commissioner explained the TIFA initiatives and the current status of the activities between the two countries. EDB Chairman requested that the regulatory requirement process for selected Sri Lankan fresh products such as moringa, mango, and herbal products expedited in the Australian market. Citing Australian investments in apparel, ICT, rubber sectors already in Sri Lanka, the commissioner suggested identifying mutual benefiting other export sectors that could add value in Sri Lanka and export to other markets taking advantage of the existing FTAs.

The High Commissioner agreed to share the information on Australia Awards capability building/training opportunities for Sri Lankan entrepreneurs and officials to build their ability to diversify and expand exports to the Australian market. Australia market is significant to the Sri Lankan export market, with an average growth of 6 per cent over the past five years. It is Sri Lanka's 13th export destination and has a tremendous ethnic demand for products from Sri Lanka.

OSL Take: The growth in trade sandwiched between Sri Lanka and Australia is an indication of the growing bilateral interactions between the two countries. The two countries have also endorsed the Australia-Sri Lanka Trade and Investment Framework Agreement, which offers a practical discussion for our two governments to tackle trade issues.

The announcement by the Australian High Commissioner to Sri Lanka is an optimistic note on the growing bilateral and trade ties among the two countries. Due to the increase in trade sandwiched between the two countries, Australian businesses/investors could look at exploiting the advantages enjoyed by Sri Lanka in international trade. Sri Lanka's geographic positioning in the Indian Ocean, the ease of doing business atmosphere in the country, and the many trade accords, as well as trade privileges enjoyed by the state, have made it an alluring business destination in the South Asian region.

 VBS/AT/12/10/2020/Z_TB2

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