Bangladesh will sign a deal with Sri Lanka for promotion and protection of investors of two countries.
The contract titled “Capital Investment, Development and Protection” is expected to be signed within a short time.
“We are now examining the Sri Lanka’s 16-page proposal for the capital and investment contract,” said an industry ministry official yesterday.
An inter-ministerial meeting held last week at the industry ministry office has finalised the contract.
According to the proposal, two countries will promise to protect the interest of their respective investors.
Proposed contract reads: “Desiring to achieve those objectives in a manner consistent with the protection and enhancement of the public welfare, including alleviation of the poverty, promotion of heath and safety, and protection of environment.”
Under the proposed agreement, the both countries will get the most favoured and national treatment along with the transfers of the investors business profit, returns and payment to their own countries.
Duration of the proposed investment contract will be 10 years and which will extend automatically without any effort.
Meanwhile, Bangladesh and Sri Lanka are supposed to sign a coastal shipping agreement before June aiming to boost bilateral trade and commerce.
Besides, Bangladesh has decided to make progress on signing a preferential trade agreement (FTA) with Sri Lanka aiming to enhance bilateral trade.
“The two agreements between Bangladesh and Sri Lanka will be signed within a short time,” Senior Commerce Secretary Hedayetullah Al Mamoon told Dhaka Tribune yesterday.
He, however, said the bilateral agreements would be useless after the World Trade Orgaisation’s multilateral regime comes to the effect. “We are still examining what type of deal – FTA or PTA – should be signed with Malaysia and Sri Lanka,” he added.
The volume of bilateral trade between Bangladesh and Sri Lanka is around US$70m.
In the fiscal year 2013-14, Bangladesh exported goods worth nearly $28m while imported goods valued at $40m.
Bangladesh’s major exports to Sri Lanka include frozen food, agricultural products, chemical items, raw jute, jute goods, knitwear and woven garments.