BANGKOK, 15th January 2017 (NNT) – Thailand and Sri Lanka will reach a free trade agreement this year according to the Ministry of Commerce.

Minister for Commerce Apiradi Tantraporn said today she had discussed a free trade agreement (FTA) with the Ministry of Industry and Commerce of Sri Lanka. The deal seeks to increase the value of two-way trade between the two nations to 1.5 billion US dollars by 2020.

The minister said the terms of the agreement are being studied and should be finalized during 2017.

Sri Lanka, according to the minister, had expressed its interest in Thai investors especially those specializing in rubber, car parts, and electronics.

Both sides agreed to hold a joint trade committee meeting to further discuss trade and business opportunities as well as other aspects of economic cooperation. However, the date for the meeting has yet to be agreed upon.

Sri Lanka is Thailand’s fourth largest trading partner in South Asia behind India, Pakistan, and Bangladesh while Thailand is Sri Lanka’s fourth largest trading partner in ASEAN behind Singapore, Malaysia, and Indonesia. Their annual trade value stands around 520 million dollars.

Thai exports to Sri Lanka include textiles, vehicles, car parts, sugar, plastic beads, rubber, and chemical products. From Sri Lanka, Thailand imports gems and jewelry, and gold and silver bars.