In a speech delivered at the BIMSTEC Business Summit 2024 held on 7th August at Taj Palace, New Delhi, the High Commissioner of Sri Lanka to India, H.E. Mrs. Kshenuka Senewiratne, set the stage with a powerful message.
She began by extending her congratulations to the Government of India and the Confederation of Indian Industry for orchestrating the summit, emphasising its significance in bringing BIMSTEC member states together.
Despite the absence of her minister due to pressing commitments back home, the High Commissioner underscored the importance of the summit’s central topic: the early operationalisation of the BIMSTEC Free Trade Agreement (FTA).
Highlighting the historical and cultural ties that bind Asia, Mrs. Senewiratne noted, “Asia’s rich history and diverse cultures have long been interconnected through trade, diplomacy, and shared heritage. Our Asian maritime routes are a testament to the longstanding bonds that unite us.”
She emphasised Sri Lanka’s strategic position in the Indian Ocean and its significant role in historical exchanges within the BIMSTEC region.
However, despite the geographical proximity of BIMSTEC member states, the region remains one of the least integrated. The High Commissioner pointed out the current state of inter-regional trade, which, while having grown from USD 4.8 billion to USD 35.96 billion between 2000 and 2022, still holds immense potential for further enhancement. “While the volume of inter-regional trade is currently insignificant, there is enormous potential for enhancing economic relations between the member countries,” she stated.
H.E. Mrs. Senewiratne reiterated Sri Lanka’s commitment to working with BIMSTEC member states to bolster trade relations, investment opportunities, and economic integration. She believes that by leveraging each nation’s strengths and resources, sustainable growth and development can be collectively achieved.
“The establishment of a BIMSTEC Free Trade Agreement will undoubtedly pave the way for a more prosperous and resilient BIMSTEC area,” she asserted.
Reflecting on the historical framework of BIMSTEC, the High Commissioner acknowledged the 1997 Bangkok Declaration, which aimed to create an enabling environment for rapid economic development in the region. Despite the declaration, finalising the FTA has remained elusive. The 2004 Framework Agreement, one of the first legal instruments covering tariff liberalization and the elimination of non-tariff barriers, has seen significant progress over 20 rounds of negotiations.
“While all member states have sensitivities and concerns, Sri Lanka is pleased to note that the negotiations are consistently engaged in a spirit of cooperation and compromise,” she said. However, she called for more sustained efforts to overcome obstacles and unlock the region’s full potential. She urged investors to “think outside the box and focus more concertedly on the issues of contention with a view to arriving at solutions.”
She also highlighted the positive contributions of prioritising areas such as trade facilitation and mutual assistance in customs matters. The recent BIMSTEC Foreign Ministers’ Retreat in Delhi emphasised the need for greater cooperation in trade and investment, urging the Trade Negotiation Committee and working groups to expedite the finalization of the FTA and related agreements.
“The establishment of such a cooperative mechanism in the area of trade and investment in this dynamic regional bloc will create many opportunities for mutual benefit, economic growth, and regional development, with the objective of improving the standard of living for all our peoples,” she concluded.
In the meantime, she encouraged BIMSTEC member states to build on existing trade agreements to further strengthen economic ties, laying the groundwork for a more integrated and prosperous future for the region.
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