• Latest
  • Trending
Road to Sri Lanka-China Free Trade Agreement is hard but worth taking   

Road to Sri Lanka-China Free Trade Agreement is hard but worth taking   

May 16, 2022
Mars

Mars bar plastic wrapper swapped for paper

May 29, 2023
Sri Lanka – Bangladesh Test Match live

How much will Sri Lanka get from ICC for test championship?

May 29, 2023
Recep Tayyip Erdogan

Erdogan wins Turkish election, extending rule to third decade

May 29, 2023
Exchange Rate

Foreign Currency Official Exchange Rates from Central Bank of Sri Lanka

May 29, 2023
New Congress government restoring communal balance in Karnataka

New Congress government restoring communal balance in Karnataka

May 29, 2023
Gold. Image credits - Jingming Pan / Unsplash

Gold prices drop further in Sri Lanka

May 29, 2023
India in global competition to woo Pacific islands

India in global competition to woo Pacific islands

May 29, 2023
Factum Perspective: Thai elections – A challenge to the military

Factum Perspective: Thai elections – A challenge to the military

May 28, 2023
Using an ancient scepter to win over Tamil Nadu

Using an ancient scepter to win over Tamil Nadu

May 28, 2023
Siddharamaiah: The new face of Karnataka

Siddharamaiah: The new face of Karnataka

May 28, 2023
Bandaranaike MemoriaI International Conference Hall cemented Sino-Lankan ties

Bandaranaike MemoriaI International Conference Hall cemented Sino-Lankan ties

May 28, 2023
Lankan President’s Japan visit will have a salutary effect on relationship

Lankan President’s Japan visit will have a salutary effect on relationship

May 28, 2023
  • About Us
  • Advertisements
  • Privacy Policy
  • Contact
Tuesday, May 30, 2023
No Result
View All Result
NewsIn.Asia
  • Home
  • Around South Asia
    • All
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
    Sri Lanka – Bangladesh Test Match live

    How much will Sri Lanka get from ICC for test championship?

    Exchange Rate

    Foreign Currency Official Exchange Rates from Central Bank of Sri Lanka

    New Congress government restoring communal balance in Karnataka

    New Congress government restoring communal balance in Karnataka

    Gold. Image credits - Jingming Pan / Unsplash

    Gold prices drop further in Sri Lanka

    India in global competition to woo Pacific islands

    India in global competition to woo Pacific islands

    Using an ancient scepter to win over Tamil Nadu

    Using an ancient scepter to win over Tamil Nadu

    Siddharamaiah: The new face of Karnataka

    Siddharamaiah: The new face of Karnataka

    Bandaranaike MemoriaI International Conference Hall cemented Sino-Lankan ties

    Bandaranaike MemoriaI International Conference Hall cemented Sino-Lankan ties

    Lankan President’s Japan visit will have a salutary effect on relationship

    Lankan President’s Japan visit will have a salutary effect on relationship

  • World
    • All
    • Japan
    • Russia
    • United Kingdom
    • United States
    Mars

    Mars bar plastic wrapper swapped for paper

    Recep Tayyip Erdogan

    Erdogan wins Turkish election, extending rule to third decade

    Lankan President’s Japan visit will have a salutary effect on relationship

    Lankan President’s Japan visit will have a salutary effect on relationship

    Joe Biden’s advisers say he doesn’t want to drag Pacific allies into ‘headlong clash’ between US and China

    Joe Biden’s advisers say he doesn’t want to drag Pacific allies into ‘headlong clash’ between US and China

    Cristiano Ronaldo

    Cristiano Ronaldo’s ‘Sajdah’ goal celebration goes viral

    US dollar notes

    ‘The mother of all crises.’ A US debt default would ricochet around the world

    Tsunami

    Scientists warn climate crisis could trigger giant tsunamis from Antarctica

    Emirates

    All Emirates passengers can now avail of free Wi-Fi connectivity onboard

    Ranil Wickremesinghe with Fumio Kishida

    President apologizes to Japanese Government over the termination of LRT project

  • Business
  • Politics
  • Sports
  • Entertainment
    • All
    • Books
    • Gaming
    • Movie
    • Music
    • Series
    Samahan

    Amitabh Bachchan expresses confidence for Sri Lankan herbal drink Samahan

    ‘Money Back Guarantee’ to mark cinematic debut of cricketing legend Wasim Akram and wife Shaniera

    ‘Money Back Guarantee’ to mark cinematic debut of cricketing legend Wasim Akram and wife Shaniera

    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The Weeknd

    The Weeknd is the world’s most popular artist, Guinness World Records says

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Watch: Oscar winning song Naatu Naatu

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Indian song ‘Naatu Naatu’ from ‘RRR’ wins Oscar award for best song

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Naatu Naatu: The RRR song primed for Oscar history

    Keanu Reeves

    11 of the best films to watch in March

    Netflix. Image credits - Souvik Banerjee @rswebsols / Unsplash

    Netflix cuts prices for subscribers in more than 30 countries

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Science
    • Travel
    Mars

    Mars bar plastic wrapper swapped for paper

    Emirates

    All Emirates passengers can now avail of free Wi-Fi connectivity onboard

    Exercise. Image credits - Victor Freitas @victorfreitas / Unsplash

    5 healthy habits that are easy to add to your day

    Global concern over babies born too soon

    Global concern over babies born too soon

    Nigerian chef Hilda Effiong Bassey

    Nigerian chef cooks for 100 hours in world record attempt

    Batik Air

    Batik Air reinstates daily services between Colombo and Kuala Lumpur

    Confucius tells us how to set ourselves free with ritual

    Confucius tells us how to set ourselves free with ritual

    Sri Lankans enjoy a walk in the beach

    My trip to Sri Lanka restored faith in fellow humans: Australian tourist

    The flavours of Sri Lanka

    The flavours of Sri Lanka

    The Issue of same-sex marriage reaches a critical juncture in India

    The Issue of same-sex marriage reaches a critical juncture in India

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Tech
    Whatsapp

    WhatsApp introduces new feature to edit sent messages

    WhatsApp

    WhatsApp will allow users to lock and hide conversations

    Whatsapp. Image credits - AARN GIRI / Unsplash

    WhatsApp announces multi-device feature to support more than one phone

    Apple store in Mumbai

    Apple says ‘Hello Mumbai’ at first India store launch

    WhatsApp

    WhatsApp to introduce five new features in 2023 

    OpenAI has created ChatGPT, a start-up focused on artificial intelligence and its potential use cases. (Image source: OpenAI)

    ChatGPT banned in Italy over privacy concerns

    Trending Tags

    • Sillicon Valley
    • Climate Change
    • Election Results
    • Flat Earth
    • Golden Globes
    • MotoGP 2017
    • Mr. Robot
  • Coronavirus
  • Videos
  • Home
  • Around South Asia
    • All
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
    Sri Lanka – Bangladesh Test Match live

    How much will Sri Lanka get from ICC for test championship?

    Exchange Rate

    Foreign Currency Official Exchange Rates from Central Bank of Sri Lanka

    New Congress government restoring communal balance in Karnataka

    New Congress government restoring communal balance in Karnataka

    Gold. Image credits - Jingming Pan / Unsplash

    Gold prices drop further in Sri Lanka

    India in global competition to woo Pacific islands

    India in global competition to woo Pacific islands

    Using an ancient scepter to win over Tamil Nadu

    Using an ancient scepter to win over Tamil Nadu

    Siddharamaiah: The new face of Karnataka

    Siddharamaiah: The new face of Karnataka

    Bandaranaike MemoriaI International Conference Hall cemented Sino-Lankan ties

    Bandaranaike MemoriaI International Conference Hall cemented Sino-Lankan ties

    Lankan President’s Japan visit will have a salutary effect on relationship

    Lankan President’s Japan visit will have a salutary effect on relationship

  • World
    • All
    • Japan
    • Russia
    • United Kingdom
    • United States
    Mars

    Mars bar plastic wrapper swapped for paper

    Recep Tayyip Erdogan

    Erdogan wins Turkish election, extending rule to third decade

    Lankan President’s Japan visit will have a salutary effect on relationship

    Lankan President’s Japan visit will have a salutary effect on relationship

    Joe Biden’s advisers say he doesn’t want to drag Pacific allies into ‘headlong clash’ between US and China

    Joe Biden’s advisers say he doesn’t want to drag Pacific allies into ‘headlong clash’ between US and China

    Cristiano Ronaldo

    Cristiano Ronaldo’s ‘Sajdah’ goal celebration goes viral

    US dollar notes

    ‘The mother of all crises.’ A US debt default would ricochet around the world

    Tsunami

    Scientists warn climate crisis could trigger giant tsunamis from Antarctica

    Emirates

    All Emirates passengers can now avail of free Wi-Fi connectivity onboard

    Ranil Wickremesinghe with Fumio Kishida

    President apologizes to Japanese Government over the termination of LRT project

  • Business
  • Politics
  • Sports
  • Entertainment
    • All
    • Books
    • Gaming
    • Movie
    • Music
    • Series
    Samahan

    Amitabh Bachchan expresses confidence for Sri Lankan herbal drink Samahan

    ‘Money Back Guarantee’ to mark cinematic debut of cricketing legend Wasim Akram and wife Shaniera

    ‘Money Back Guarantee’ to mark cinematic debut of cricketing legend Wasim Akram and wife Shaniera

    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The Weeknd

    The Weeknd is the world’s most popular artist, Guinness World Records says

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Watch: Oscar winning song Naatu Naatu

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Indian song ‘Naatu Naatu’ from ‘RRR’ wins Oscar award for best song

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Naatu Naatu: The RRR song primed for Oscar history

    Keanu Reeves

    11 of the best films to watch in March

    Netflix. Image credits - Souvik Banerjee @rswebsols / Unsplash

    Netflix cuts prices for subscribers in more than 30 countries

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Science
    • Travel
    Mars

    Mars bar plastic wrapper swapped for paper

    Emirates

    All Emirates passengers can now avail of free Wi-Fi connectivity onboard

    Exercise. Image credits - Victor Freitas @victorfreitas / Unsplash

    5 healthy habits that are easy to add to your day

    Global concern over babies born too soon

    Global concern over babies born too soon

    Nigerian chef Hilda Effiong Bassey

    Nigerian chef cooks for 100 hours in world record attempt

    Batik Air

    Batik Air reinstates daily services between Colombo and Kuala Lumpur

    Confucius tells us how to set ourselves free with ritual

    Confucius tells us how to set ourselves free with ritual

    Sri Lankans enjoy a walk in the beach

    My trip to Sri Lanka restored faith in fellow humans: Australian tourist

    The flavours of Sri Lanka

    The flavours of Sri Lanka

    The Issue of same-sex marriage reaches a critical juncture in India

    The Issue of same-sex marriage reaches a critical juncture in India

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Tech
    Whatsapp

    WhatsApp introduces new feature to edit sent messages

    WhatsApp

    WhatsApp will allow users to lock and hide conversations

    Whatsapp. Image credits - AARN GIRI / Unsplash

    WhatsApp announces multi-device feature to support more than one phone

    Apple store in Mumbai

    Apple says ‘Hello Mumbai’ at first India store launch

    WhatsApp

    WhatsApp to introduce five new features in 2023 

    OpenAI has created ChatGPT, a start-up focused on artificial intelligence and its potential use cases. (Image source: OpenAI)

    ChatGPT banned in Italy over privacy concerns

    Trending Tags

    • Sillicon Valley
    • Climate Change
    • Election Results
    • Flat Earth
    • Golden Globes
    • MotoGP 2017
    • Mr. Robot
  • Coronavirus
  • Videos
NewsIn.Asia
No Result
View All Result
Home Around South Asia China

Road to Sri Lanka-China Free Trade Agreement is hard but worth taking   

Editor by Editor
May 16, 2022
in China, Sri Lanka, Top Story, Trade
Reading Time: 4 mins read
13 0
A A
Road to Sri Lanka-China Free Trade Agreement is hard but worth taking   

Colombo Port

Share on WhatsApp

By P.K.Balachandran

Colombo, May 16 (Ceylon Today): In the early phase of the economic crisis in Sri Lanka, China had refused to reschedule the repayment of loans it had given, saying that it had no system of doing such a thing. Its Foreign Minister, Wang Yi, had advised the Sri Lankan President, Gotabaya Rajapaksa, that he should instead promote Sri Lankan industries and exports and sign the long-pending Free Trade Agreement (FTA) with China to end the foreign exchange shortage.

Later, when the economic situation in Sri Lanka worsened, China offered to give a loan of US$ 1.5 billion to help pay off old loans and an additional US$ 1 billion as buyer’s credit to purchase essential goods from China. After grumbling about not being consulted before Sri Lanka approached the IMF, China offered to help Sri Lanka swing a good deal with the IMF.

ADVERTISEMENT

But China’s old demand that Sri Lanka should speedily negotiate and conclude an FTA with it, still remains. China is certain to pursue this goal to firm up its economic ties with Sri Lanka which cannot be based only on the Belt and Road Initiative (BRI), which is basically a program of building infrastructural facilities. China would like its relations with Sri Lanka to be based on the firmer ground of trade and investment. The FTA would throw open opportunities for trade and investment.    

Understandably, Sino-Lankan trade has been heavily one-sided. In 2020, China exported US$ 4.01 billion to Sri Lanka. The main products were light rubberized knitted fabric ( US$241 million), broadcasting equipment (US$ 225 million), and refined petroleum (US$127 million). In the same year, Sri Lanka exported US$ 266 million worth of goods to China. The main products were tea (US$ 60.4 million), coconut and other vegetable fibers (US$ 24.2 million) and knit T-shirts (US$ 18.5 million).

Sri Lanka would like this to be a little less one-sided, but it is wary about entering into an FTA with China, as indeed it has been with other countries. The Indo-Lankan FTA has given a boost to Lankan exports to India, but still, Sri Lankans keep viewing the ISLFTA unfavorably. They blame the Non-Tariff Barriers (NTB) raised by India.

The same apprehensions plague their minds when they are made to discuss an FTA with China. China’s exports to Sri Lanka have increased by leaps and bounds. According to economist Umesh Moramudali, in 2000, imports from China represented only 3.5% of Sri Lanka’s total imports. But by 2017, that had risen to 20%. There was a four-fold rise in imports from China from 2011 to 2018.

Further, Moramudali points to an interesting fact that Sri Lanka’s imports from China increased despite an overall contraction in the island nation’s international trade and the rise of protectionism in its policies. Sri Lanka’s imports-to-GDP ratio was 36% in 2005; during the same year, imports from China to GDP ratio was only 2.6%.  By 2017, the imports to GDP ratio had dropped down to 23.8% while imports from China to GDP ratio had increased to 4.8 %.

“This significant increase in imports from China came even without China having a Free Trade Agreement (FTA) with Sri Lanka. That means Chinese imports are subjected to normal tariffs, which might be eliminated under an FTA,” he observes. This could worry Sri Lankan entrepreneurs.

It was in 2014, during the regime of the China-friendly Lankan President Mahinda Rajapaksa, that discussions on an FTA with China were mooted. Since then, the two sides have had six discussion sessions. But the talks broke down in 2017 due to disagreements over the level of trade liberalization under the FTA. China wanted 90% of goods to be tariff free. “Clearly a scenario Sri Lanka is not comfortable with”, as Moramudali observes.

According to the website Silk Road Briefing, China gives priority to trade in goods and then moves on to trade in services and investments in its FTAs with other countries (China has signed FTAs with 26 countries so far). China is typically committed to eliminating duties on over 95% of tariff lines. “This represents a huge market for Sri Lankan manufacturers if they can break out of the mold of purely thinking domestically,” the Silk Road Briefing website says.

The opportunities for Sri Lankan entrepreneurs are aplenty. The Colombo-based Institute of Policy Studies (IPS) said in its 2015 report on the Sino-Lankan FTA that Sri Lanka had a comparative global trade advantage in 566 products, of which, 243 items were or could be exported to China. There were an additional 299 products with trading potential with China. These included vegetable products, rubber, and plastics.

The Silk Road Briefing website points that there are regional examples which Sri Lankan businesses and entrepreneurs could follow: “The China-ASEAN Free Trade Agreement, which impacted small countries such as Cambodia and Laos, as well as larger economies such as Indonesia, Malaysia, Thailand, and Vietnam, came into effect in 2009. At the time, unprepared businesses struggled in their own domestic markets with more affordable and often superior Chinese products – but were able to adapt by either re-investing in their own businesses, joining together with Chinese partners, and by looking more closely at the China market. Their China results have been significant.”

Comparing exports to China between 2008 and 2020, the website found that these South East Asian countries had increased their exports in billions of dollars. Cambodia’s exports rose from US$ 0.841 billion to US$ 1.46 billion; Indonesia’s from US$ 11.63 bn to US$ 32.6 bn; Laos’ from US$ 0.47 bn to US$  1.68 bn; Malaysia’s from US$ 19.01 bn to US$ 38.7 bn; Thailand’s, from US$ 15.9 bn to US$ 30.2 bn; and Vietnam’s from US$ 4.8 bn to US$ 49.4 bn.

Sri Lankan entrepreneurs will have to come out of their cocoons to take advantage of opportunities to enter the gargantuan markets in China and India provided by FTAs.

END                                        

Related Posts

Sri Lanka – Bangladesh Test Match live
Around South Asia

How much will Sri Lanka get from ICC for test championship?

May 29, 2023
Exchange Rate
Around South Asia

Foreign Currency Official Exchange Rates from Central Bank of Sri Lanka

May 29, 2023
New Congress government restoring communal balance in Karnataka
Communities

New Congress government restoring communal balance in Karnataka

May 29, 2023
Gold. Image credits - Jingming Pan / Unsplash
Around South Asia

Gold prices drop further in Sri Lanka

May 29, 2023
India in global competition to woo Pacific islands
China

India in global competition to woo Pacific islands

May 29, 2023
Factum Perspective: Thai elections – A challenge to the military
Around The World

Factum Perspective: Thai elections – A challenge to the military

May 28, 2023
  • Electricity

    Power cut schedule for today in Sri Lanka: Uninterrupted power supply

    60240 shares
    Share 24118 Tweet 15051
  • Registration open for National Fuel Pass

    6641 shares
    Share 2694 Tweet 1645
  • Foreign Currency Official Exchange Rates from Central Bank of Sri Lanka

    1852 shares
    Share 747 Tweet 460
  • WATCH : Yohani’s first live performance in India

    790 shares
    Share 329 Tweet 192
  • Power interruption schedule released: Check your area power cut time

    742 shares
    Share 320 Tweet 176
  • About Us
  • Advertisements
  • Privacy Policy
  • Contact

© 2022 All rights reserved.

No Result
View All Result
  • Home
  • Around South Asia
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
  • Around The World
  • Breaking News
  • Business
    • Exchange
  • Climate Change
  • Governance
    • Crime
    • Diplomacy
    • Defense
    • Human Rights
    • Politics
    • Strategic Affairs
  • Lifestyle
    • Books
    • Entertainment
      • Arts
      • Cinema
      • Gaming
      • Music
      • Movie
      • Series
      • TV
    • Health
    • Fashion
    • Food
    • Travel
  • Culture
    • Ethnicity
    • Gender
  • Development news
  • Economy
  • Education
  • Environment
  • Coronavirus
  • History
  • National
  • Offbeat
    • Media
    • Music and arts across South Asia
  • Recommended
    • Headlines
    • Highlights
    • Top Picture
    • Top Story
  • Religion
  • Science
  • Sports
    • Football
    • Cricket
      • LPL
      • IPL
    • Tennis
    • Formula 1
    • NBA
  • Tech
    • Instagram
  • United Nations
  • Weather
  • World
    • Japan
    • Russia
    • United States
  • Videos

© 2022 All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

eskisehir escort -

https://www.vudols.com/

- Sağlık Personeli - mersin escort - Antalya korsan taksi -
ip booter