As Thai Prime Minister Srettha Thavisin prepares to visit Sri Lanka on February 3-4, the recently released trade data sheds light on the burgeoning economic relationship between the two countries. The visit, which will culminate in the signing of a free trade agreement (FTA), further solidifies this promising direction.
According to oec.world, in 2021, Thailand exported $409 million worth of goods to Sri Lanka, a 2.47% annual increase since 1995. Rubber, fish, and light rubberized knitted fabrics topped the list. Conversely, Sri Lanka exported $67 million to Thailand, showcasing a 4.2% annual growth over the same period, with precious stones and light rubberized knitted fabrics, leading the way.
These figures underscore the mutual benefits of increased trade. For Thailand, Sri Lanka serves as a burgeoning market for its key exports, while Sri Lankan businesses find Thailand, an ASEAN member, as a gateway to wider Southeast Asian markets.
The upcoming FTA signing during the Prime Minister’s visit is poised to further accelerate this positive trend. By streamlining trade procedures and reducing tariffs, the agreement will incentivize further investment and diversification in bilateral trade, creating win-win situations for both economies.
Prime Minister Thavisin’s visit underscores the growing importance Thailand places on its relationship with Sri Lanka. Beyond the FTA, the renewal of the Air Services Agreement and the collaboration between gem and jewelry institutes solidify the commitment to deeper economic and cultural ties.
As Sri Lanka celebrates its Independence Day with Thailand as the Guest of Honour, the signing of the FTA and the strengthening trade relations set the stage for a new era of mutual prosperity and economic cooperation between the two nations.
