Dhaka, Nov 03: Bangladesh and Sri Lanka said on Sunday, after two days of talks, that they would hold further discussions aimed at reaching a free trade agreement (FTA) which they believe could greatly boost bilateral trade. "We have agreed to continue discussion on FTA to boost our trade for mutual benefit," Manel de Silva, Director General of Commerce for Sri Lanka, told reporters.

"Our next meeting would be held in Colombo in January and we expect to reach the FTA by the end of 2004," she said.

Elias Ahmed, who headed the Bangladesh side at the talks, said trade between the two countries had remained "far below potential" and prospects for expansion should be explored. Bangladesh exports to Sri Lanka in fiscal 2002-03 (July-June) totalled $3.75 million versus imports worth $8.0 million, commerce ministry officials said.

The imports included coconut oil, textile accessories and rubber, while the main exports were pharmaceuticals, jute goods, leather products and cement, they said.

"FTA with Colombo will expand business in insurance, banking, shipping and ports bringing a positive impact on our economy," Ahmed said, adding that Sri Lankan investors could also benefit from Dhaka's liberal policies. Bureau Report