Philippines to renew trade with Sri Lanka on a larger scale
The Philippines is ready to renew trade with Sri Lanka on a larger scale and maintain close relations with the new government, its ambassador in Sri Lanka Vicente Vivencio T. Bandillo told the Business Times on the sidelines of a Philippines trade and investment seminar in Colombo this week.
He noted that the new Sri Lankan government should reactivate the landmark 1980 trade agreement with the Philippines to promote bilateral trade again.
Mr. Bandillo stressed the need for more efforts on trade and establishing a mechanism bilaterally to move towards B2B and multi-sector cooperation.
He told the gathering of investors, businessmen and entrepreneurs who attended the seminar that they should explore the possibility in promoting tourism and related services between the two countries.
With total annual trade between both countries lying at a low level, he noted that there is no significant trade improvement “between us” in recent years and it is time to explore these unrealised trade potentials.
“The Philippines is a nation of islands, therefore it is time to enhance marine cooperation as well and with Sri Lanka’s boat-building technology and reputation the country should look to start supplying modern catamarans and boats as it has a huge demand in my country,” he disclosed.
While extending an invitation to Sri Lankan businessmen to visit his country, he pointed out that it is essential to carry out trade promotion in a practical way to improve exports.
He said that they are planning to take a Sri Lankan business delegation to Manila by June or July this year and thereafter send a delegation from Manila to Colombo to promote bilateral trade relations.
John Paul B. Inigo, the embassy’s Commercial Counsellor, noted that both Sri Lanka and his country should work towards exploring trade and investment opportunities between the two nations, which currently stands at negligible levels.
He added that visas for this purpose could be obtained from Hugh Sriyal Dissanayake, Honorary Consul of the Philippines in Sri Lanka.
He said the Philippines sees Sri Lanka as an essential market in the South Asia region adding that opportunities for both countries in the fronts of tourism, garments, electronics and semiconductors, and infrastructure are worth exploring.
“While Sri Lanka, by comparison to other countries, may be a small market for now, it may present a strategic importance for some Filipino companies already dealing with the region,” he added.
He further commented: “With both countries being top coconut cultivators exporters, joint coconut development efforts should be made for the benefit of the industry in both countries”.
Mr. Inigo noted that Sri Lanka has a vast experience in the coconut industry, so his country welcomes the expert assistance from the island nation to uplift their coconut cultivations and exports.
He also called upon Sri Lankan exporters to link up with Filipino companies to promote Sri Lankan tea in his country where the people are mainly coffee drinkers.
The Philippines was the second-fastest growing country in Asia after China in 2014. Its GDP grew by 6.9 per cent in Q4 in comparison with 2013′s Q4.
The Asian Development Bank expects the Philippine economy to grow by 6.4 per cent in 2015, he disclosed.
Commerce Department Director General R.D.S. Kumararatne disclosed that bilateral trade between the two countries had increased to US$64 million in 2014 from $35 million in 2013.
He added that apparel was the main export to the Philippines accounting for 46 per cent of total volume. Other export items to the Philippines were rubber tyres, gloves, tea, trailers and semi-trailers and chemical derivatives, etc.
The main import item from the Philippines was cereal (29 per cent of total imports) followed by articles made of wood.
He pointed out that Sri Lanka should explore the trade potential in the Philippines taking advantage of its position as the founding member of the Association of Southeast Asian Nations (ASEAN).
Minister of Sports and Tourism Naveen Dissanayake, who was the chief guest at the seminar, noted that the both countries should explore the vast potential of tourism identifying several potential business areas that both nations can get engaged and then organise a sector specific delegation to visit the Philippines.