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US$ 350 million Turkish credit line for Lanka
View(s):As Sri Lanka plans to strengthen its political and economic relations with Turkey, following the recent visit by Turkish Foreign Minister Mevlüt Çavusoglu, the Turk Exim Bank and the Ministry of Finance has just finalised a Memorandum of Understanding (MoU) for a credit line worth US$ 350 million.
At present, the Turkish investment in Sri Lanka is comparatively small, but several Turkish companies have expressed interest to invest in Sri Lanka on the basis of Private Public Partnership (PPP), specifically in the construction sector.
When President Maithripala Sirisena met the Turkish Foreign Minister this month, he urged Turkey to increase investments in Sri Lanka. The Turkish minister briefed the President on further steps to strengthening of trade, investment and bilateral relations.
The total trade volume between the two countries was US$ 230 million in 2015, according to the latest available figures. The trade balance has been in favour of Sri Lanka for the last ten years.
Sri Lanka’s exports to Turkey in 2015 totaled US$ 180 million, while imports amounted to US$ 50 million. The biggest single export from Sri Lanka is Tea representing 76% of exports. The major item of imports from Turkey during 2015 was plastic and articles thereof, parts and accessories of motor vehicles.
Sri Lanka and Turkey pledged to expand trade during a meeting in January this year, between the Prime Ministers of the two countries on the sidelines of the World Economic Forum in Davos, Switzerland.
The second session of the “Joint Committee on Economic and Technical Cooperation between Sri Lanka and Turkey” (JECTC) is scheduled to be held in Turkey later this year after the first session was held in Colombo in 1990.
Under the auspices of Turkish Foreign Economic Relations Board (DEIK) a Turkey-Sri Lanka Business Council was formed recently. A delegation representing the business council visited Sri Lanka last month and entered into a MoU for partnership with Ceylon Chamber of Commerce (CCC).
After the tsunami, Turkey helped build 450 houses built at a cost of about Rs. 760 million (The Turkish designated village in Midigama, Matara).
Turkish Cooperation and Coordination Agency (TIKA) constructed 100 houses in Mannar for the Muslim IDPs who were displayed during the conflict. In addition, TIKA has granted computers to a training office of National Youth Council which operates in Mannar to provide employment.
The Turkish Red Crescent Society donated family size tents, solar powered lamps and blankets as relief items in response to the call of the Government of Sri Lanka for assistance from the international community following the recent devastating floods.
The relief materials were brought to Bandaranaike International Airport by Turkish airlines on Sunday 22nd May. Ambassador of the Republic of Turkey to Sri Lanka Tunca Ozcuhadar handed over the relief supplies to Anura Priyadarshana Yapa, Minister of Disaster Management.