Bangladesh and Sri Lanka have decided to sign a free trade agreement (FTA) to bolster business and investment between the two South Asian neighbours aiming at the betterment of lives of the two peoples.The FTA generally refers to the establishment of a mechanism through which commerce in goods and services can be conducted without tariffs or hindrances. But, capital or labour may not move freely and member countries usually impose a uniform tariff with non-member countries.

The decision to sign the FTA was taken during the official talks between visiting Sri Lankan President Maithripala Sirisena and Prime Minister Sheikh Hasina at the prime minister’s office (PMO) yesterday, Foreign Secretary Shahidul Haque informed reporters after the meeting.

The FTA will be signed this year and officials of both the countries have been instructed by the two heads of the government to finish all the negotiations and studies as soon as possible to pave way for the signing, he said.

The foreign secretary described the decision as a ‘big political push’ towards cooperation in trade and investment between the two countries and said that this is going to be Bangladesh’s first FTA with any country.

He said that the talks between the two leaders were mainly focused on trade, investment and agriculture.

Haque also said that 14 bilateral instruments including 13 memorandums of understanding (MoUs) on cooperation in different sectors were signed between the two countries. President Sirisena and Prime Minister Sheikh Hasina witnessed the signing of the instruments.

Out of the 14 instruments of which one is agreement, seven are on cooperation trade, investment and agriculture, he said.

The instruments and a joint statement, which will be issued later, has given a framework to the relation of the two countries, said the foreign secretary adding that the 35-point joint statement reflected the vision of the two countries to strengthen political and trade relations.

A strong ground has been prepared for cooperation in the higher education sector as a large number of Sri Lankan students are studying in Bangladesh, especially in medicine, he said.

The Sri Lankan president described the visit ‘historic’ and said it will initiate a new journey

with regard to the bilateral relationship between the two countries, Haque said.

The only agreement that was signed by Home Minister Asaduzzaman Khan and Sri Lankan Foreign Minister Ravi Karunanayake will allow visa free travel by official and diplomatic passport holders of the two countries.

The 13 MoUs are: Cooperation in agriculture, economy and information and communication technology between respective departments, between Ceylon Shipping Corporation (CSC) and Bangladesh Shipping Corporation (BSC), between Bangladesh Institute of International and Strategic Studies (BIISS) and Lakshman Kadiragama Institute of International Relations and Strategic Studies (LKIIRSS) on cooperation in the field of international and strategic studies, between University Grant Commissions of the two countries on cooperation and collaboration in the field of higher education, between Bangladesh Foreign Service Academy (FSA) and Bandaranaike Diplomatic Training Institute (BIDTI), between Central Bank of Sri Lanka and Bangladesh Bank for cooperation in financial sector/services, between Bangladesh Investment Development Authority (BIDA) and Board of Investment of Sri Lanka for cooperation on investment matters, between Bangladesh Standards and Testing Institution (BSTI) and Sri Lanka Standards Institution (SLSI), between Bangladesh Sangbad Sangstha (BSS) and Sri Lankan National News Agency Lankapuvath Ltd on information and broadcasting in the fields of radio, film and television, and on collaboration between Chittagong BGMEA Institute of Fashion and Technology (CBIFT) and Sri Lanka Institute for Apparel and Textiles (SLITA).

In the afternoon, Speaker of the Parliament Shirin Sharmin Chaudhury met President Sirisena at the latter’s hotel. Leader of the Opposition Raushon Ershad and Health Minister Mohammed Nasim also met him.

In the evening, Sirisena met President Abdul Hamid at Bangabhaban followed by a state banquet and a cultural show.

This morning, the visiting president will attend an economic dialogue at Radisson Blu Hotel where he will address representatives of businesses and industries of Bangladesh and Sri Lanka.

At 1pm, he will depart for Colombo wrapping up his three-day state visit.