Karachi, The Consul General of Sri Lanka, Jagath Abeywarna, has highlighted the persistently low trade volume between Sri Lanka and Pakistan, despite a Free Trade Agreement (FTA) in place since 2005 and decades of diplomatic relations. According to a new release by the Sri Lankan Consulate in Karachi, Abeywarna noted that the trade volume between the two countries remains "insignificant" at US$440 million. Pakistan's exports to Sri Lanka stood at US$360 million, while Sri Lankan exports to Pakistan amounted to US$80 million.
According to Karachi Chamber of Commerce & Industry, Speaking during a visit to the Karachi Chamber of Commerce & Industry (KCCI), Abeywarna emphasized the need to revisit the FTA and develop mechanisms to facilitate transactions between exporters and importers of both countries, given the dire shortage of foreign currency. He stressed the importance of mutual support between the two nations, especially considering their challenging economic situations.
Pakistan and Sri Lanka have enjoyed friendly relations for 75 years, and activities have been planned in Karachi, Islamabad, and Lahore to commemorate this milestone. Abeywarna noted that Pakistan was once the leading buyer of Sri Lankan products, particularly Ceylon tea, but this trend has shifted towards importing tea from other countries like Kenya.
To improve trade ties, the Sri Lankan CG highlighted the importance of collaboration between the private sectors of both nations, including participation in trade fairs and regular exchange of trade delegations. He identified several sectors with potential for promoting trade, such as pharmaceuticals, fabrics, leather, and construction materials.
President of KCCI, Iftikhar Ahmed Sheikh, welcomed Abeywarna and acknowledged that despite the FTA, Pakistan's exports to Sri Lanka have remained stagnant. He stressed the need for both countries to work together to expand their domestic markets and establish a Free Trade Area that would facilitate the free movement of goods and services while reducing trade barriers. Sheikh also suggested exploring a two-way currency SWAP arrangement to address dollar shortages and deepen financial cooperation.