Sri Lanka and Pakistan have agreed to expand their bilateral free trade agreement by inclusion of services and investment. Apart from this 8 MoUs and defence deal has been signed between both the nations during the Pakistan Prime Minister Nawaz Sharif official visit to Sri Lanka.
- This would help companies of the two nations to form joint ventures for exports to other nations.
About Free Trade Agreement
FTA between both nations came into force in June 2005. Since the Pakistan’s exports to Sri Lanka were to the tune of $150 million.
- Sri Lanka’s exports to Pakistan were valued at about $52 million accounting for around 70% of the country’s total exports to Pakistan.
MoUs signed between the two countries
- Health cooperation
- Trade cooperation
- Cultural cooperation
- Agricultural cooperation
- Sharing of statistical census data
- Science, Technology and Innovation Cooperation
- Cooperation between the Gem and Jewellery Research and Training Institute of Sri Lanka and Pakistan Institute of Fashion and Design
- Cooperation in the exchange of financial intelligence related to money laundering and terrorism financing
Pakistan also signed a landmark defence deal to sell JF-17 Thunder fighter jets to Sri Lanka. Under this deal Pakistan will sell 8 JF-17 Thunder fighter jets which are already part of Pakistan Air Force (PAF).
Pakistan Capital – Islamabad
Pakistan Currency – Pakistani rupee
Sri Lanka Capitals – Sri Jayawardenepura Kotte, Colombo
Sri Lanka Currency – Sri Lankan rupee