Is Sri Lanka Expanding Free Trade Agreements to Enhance Exports and Foreign Exchange?
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Synopsis
Sri Lanka is on the verge of enhancing its export landscape by entering into new free trade agreements. This strategic move aims to diversify markets and increase foreign exchange earnings significantly. Discover how these efforts could reshape the nation’s economic future.
Key Takeaways
- Sri Lanka is expanding free trade agreements to enhance exports.
- The goal is to boost foreign exchange earnings significantly.
- Apparel exports are targeted to reach $8 billion by 2030.
- The government aims for greater market diversification.
- Repeal of the Presidents' Entitlements Act aligns with accountability goals.
Colombo, Aug 17 (NationPress) The government of Sri Lanka is set to initiate additional free trade agreements (FTAs) with international partners in an effort to diversify its export markets and increase foreign exchange revenues, according to reports from the media on Sunday, citing a senior official.
The Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, emphasized that market diversification is essential for cultivating a competitive and resilient export sector, as reported by Xinhua News Agency.
He pointed out that broadening trade partnerships will not only aid in diversifying products but also enhance integration into global supply chains. Furthermore, the government is concentrating on augmenting value addition and establishing stronger brand recognition, he stated.
Abeysinghe mentioned that Sri Lanka's apparel exports surpassed $5 billion in 2024. The target is to elevate this figure to $8 billion by 2030.
In July, the government introduced the Presidents' Entitlements (Repeal) Bill, intended to eliminate special privileges afforded to former Presidents and their widows.
This bill follows cabinet approval to modify the Presidents' Entitlements Act No. 4 of 1986. The suggested alterations are aimed at terminating longstanding benefits for former presidents and their widows.
Sri Lanka currently offers a variety of privileges to these groups.
Earlier this year, a government minister revealed that the state expended over Rs 1.1 billion (approximately $3.7 million) in 2024 on benefits for former Presidents.
The initiative to repeal these entitlements fulfills a critical commitment of the current administration.
On July 22, the Cabinet of Ministers sanctioned the release of a draft bill to repeal the Presidents' Entitlements Act, effectively nullifying special privileges granted to former Presidents and their families.
This action aligns with the government's policy declaration “Pohosath Ratak – Lassana Jeewithayak,” which promises to decrease state spending and enhance accountability.
Point of View
This initiative reflects a proactive approach by the Sri Lankan government to bolster economic resilience. By expanding free trade agreements, the nation is not only aiming to diversify its export channels but also to integrate more effectively into global supply chains. This strategy is essential for fostering long-term growth and stability.
NationPress
19/08/2025
Frequently Asked Questions
What are free trade agreements?
Free trade agreements (FTAs) are treaties between two or more countries that aim to reduce or eliminate barriers to trade, such as tariffs and import quotas, to promote economic cooperation.
How will FTAs benefit Sri Lanka?
FTAs will help Sri Lanka diversify its export markets, increase foreign exchange earnings, and strengthen its position in global supply chains.
What is the target for Sri Lanka's apparel exports?
Sri Lanka aims to raise its apparel exports from over $5 billion in 2024 to $8 billion by 2030.
What is the Presidents' Entitlements (Repeal) Bill?
The Presidents' Entitlements (Repeal) Bill aims to abolish special privileges granted to former Presidents and their widows, aligning with government efforts to reduce unnecessary state expenditure.
How much did the state spend on benefits for former Presidents?
In 2024, the state spent over Rs 1.1 billion (approximately $3.7 million) on benefits for former Presidents.
