KARACHI: High Commissioner of Sri Lanka Vice Admiral Mohan Wijewickrama has said that Sri Lanka was seriously looking at China-Pakistan Economic Corridor (CPEC) as this project, in addition to improving trade ties with Pakistan, would also open up a lot of trade opportunities with Central Asian Republics (CARs).
Sri Lanka’s trade could be developed by connecting Gwadar Port with Colombo Port which was one of the biggest ports in South Asia wherein two more terminals, Eastern and Western terminals were being developed despite the economic meltdown suffered by the country, he added while speaking at a meeting during his visit to Karachi Chamber of Commerce & Industry (KCCI). Sri Lankan Consul General Jagath Abeywarna, President KCCI Mohammed Tariq Yousuf, Senior Vice President Touseef Ahmed, Vice President Mohammad Haris Agar, Former President Saeed Shafiq, Former Vice President Shamsul Islam Khan and KCCI Managing Committee Members also attended the meeting.
While expressing optimism about Sri Lanka’s recovery from the economic meltdown, the High Commissioner said that it happened as the governments from time to time kept piling up debts that led to bringing Sri Lanka to level where it was unable to pay its loans in 2021 so the government had to take a decision whether to pay the loans and keep the people starved or feed the people and avoid paying loans so the decision was taken to default one loan. “The government is quite confident that Sri Lanka would come out of economic crises as political stability has been achieved and negotiations are also underway with IMF for an extended economic facility with restructured loans while reforms will also be introduced in the loss-making enterprises. We are in the right direction and we have to make necessary corrections before we take off and are able to do business with our friends”, he said, adding that the COVID-19 pandemic created a lot of problems for Sri Lanka as all its hotels and SMEs closed down during the pandemic period.
Commenting on Sri Lanka-Pakistan Free Trade Agreement (FTA) signed in 2005, he said that trade volumes doubled after signing of FTA and the trend continued for a period of 10 years but then it became stagnated. “Under the FTA, trade should have reached at least US$2 billion but unfortunately it did not happen as we both are exporting to other countries and importing from other countries instead of each other”, he opined.
He stressed that SAARC members must explore ways and means to improve trade within the SAARC region which was even stronger than ASEAN in terms of GDP and population. “We will not need to look at anywhere else, if we take steps to promote trade amongst SAARC countries.”
Appreciating the efforts being made by Sri Lankan Consul General in Karachi Jagath Abeywarna, the High Commissioner said, “A lot of activities have started taking place in Karachi thanks to all the sincere the efforts made by Jagath Abeywarna which encourages us in Islamabad that although it is late but it won’t make a difference as we can kick off from now onwards to see trade between the two countries going up. There are a lot of opportunities available so all of us must look at them positively.”
Sri Lankan HC further said that Sri Lanka and Pakistan have always been trusted friends as most of the Sri Lankans find themselves closest to Pakistan. “Sri Lanka had been a victim of terrorism but whenever we requested, Pakistan always came to extend assistance. I am a military man so I know and I have seen how Pakistan came forward to help us.”
Earlier President KCCI Mohammed Tariq Yousuf, while welcoming the Sri Lankan High Commissioner, stated that despite signing of Free Trade Agreement (FTA) in 2005, trade volume between Pakistan and Sri Lanka stood at $457 million, which was very nominal and needs special attention from both sides.
Highlighting the huge potential to accelerate bilateral trade between the two neighboring countries, he stressed that both sides must look into the possibility of removing trade barriers for greater ease in comparison to other countries
He was of the opinion that as Pakistan & Sri Lanka have been facing dollar shortages, a two-way currency SWAP arrangement should be pursued in which both countries can swap their local currencies in exchange for dollars. “This would further strengthen their financial cooperation and deepen their economic relationship.”
Sri Lankan investors & their corporate sector should capitalize on the existing potential for joint ventures in Pakistan’s huge energy sector, cement, textile motorcycles, cars, Basmati rice, livestock, maritime etc. for strengthening bilateral economic cooperation, he added.
While highlighting the impact of China-Pakistan Economic Corridor (CPEC) on regional economies, Tariq Yousuf advised Sri Lanka to become part of this project which will help in further cementing the existing ties through improved regional connectivity and also prove favorable in achieving economic growth and development. “The strategic troika comprising Pakistan-Sri Lanka and China can offset the growing concerns of regional states and overcome the emerging geo-economic challenges.”
He also stressed that there was a need to boost and strengthen air and maritime linkages between both countries to promote trade and economic development. To further improve bilateral economic relationships and deepen this connectivity, both countries should ensure effective implementation of FTA, promote people-to-people and business-to-business interactions, host regular cultural and educational exchanges, and develop foreign investment-friendly conditions and policies.
