Sri Lanka is moving to establish a National Trade Negotiation Committee to prepare the groundwork for prospective Free Trade Agreement (FTA) negotiations, with preliminary activities potentially beginning in January, the Ministry of Trade has said.
Ministry of Trade Secretary K.A. Vimalenthirarajah said the Government was currently appointing members to the committee, which would be responsible for completing the domestic preparations required before negotiations on new trade agreements could proceed.
“We are currently appointing the National Trade Negotiation Committee to undertake the domestic preparations for the internal primary activities to start certain FTAs,” he told local media.
The proposed committee is expected to undertake preliminary work within the Government before Sri Lanka proceeds with discussions on prospective agreements. Its establishment follows the submission of a study on FTAs to the Cabinet Office, although Vimalenthirarajah did not provide a specific update on whether the study had received approval or when its recommendations might be implemented.
He indicated that January could provide an opportunity to advance the preparatory activities, but said the immediate timetable had been affected by the ongoing budget process and the approaching festive season. These factors have delayed progress on the initial work required to move the process forward.
The timing of formal negotiations will also depend on the willingness of Sri Lanka’s prospective trading partners. Vimalenthirarajah stressed that the Government could not independently determine when discussions would begin, as negotiations would require the agreement of the respective countries.
The committee’s establishment comes as Sri Lanka considers the revival of several trade negotiations that have remained stalled. In October, the Department of Commerce indicated that the country intended to give priority to discussions with India and China before exploring possible trade agreements with other markets.
The previous administration had also pursued trade discussions with Malaysia, Indonesia and Bangladesh, reflecting a broader effort to expand Sri Lanka’s trade arrangements with countries in the region. However, the latest indication from the Department of Commerce places India and China at the forefront of the Government’s stated priorities.
Sri Lanka already has bilateral Free Trade Agreements with India, Pakistan, Singapore and Thailand. The country is also a participant in regional trade arrangements, including the South Asian Free Trade Area and the Asia-Pacific Trade Agreement.
The proposed National Trade Negotiation Committee is expected to provide the domestic preparatory framework for taking forward prospective agreements. However, the Government has yet to announce a definitive timetable for the commencement of negotiations or provide further details on the status of the FTA study submitted to the Cabinet Office.
