The two countries will be reaching an agreement on the proposed product specific rules under the CSFTA with the inclusion of proposals put forward by Sri Lankan exporters and businessmen.     

Bilateral consultations on the proposed product specific rules were scheduled to take place during the first week of this month with a Chinese delegation and Sri Lankan officials.

But the outcome of the planned visit of the Chinese delegation to Sri Lanka between August 2-4, to discuss the agreement has not been given any publicity by the government.

Sri Lanka has shown interests in exploring a bilateral trade agreement with China.

Both countries now have agreed that they would embark on a free trade agreement, which is hoped to open up the vast Chinese market to Sri Lanka’s producers, manufacturers and exporters. This would not only boost bilateral trade but help reduce Sri Lanka’s heavy reliance on traditional markets in Europe and USA.

The agreement covers a substantial number of tariff lines and trade as well as address non-tariff barriers that may hinder export expansion.

Considering the reservations about adverse effects of a FTA with China, the agreement needs to be prepared carefully taking into account asymmetries between the two economies, with a rational negative list and a longer phase-out liberalisation schedule.