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Bangladesh-SL FTA could help boost bilateral trade though uncertainties remain – Economist

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Jamal Uddin: Optimistic about collaboration (L) / Abdul Awal Mintu: Hopeful of normalcy (R)

By Ifham Nizam

A Free Trade Agreement (FTA) between Bangladesh and Sri Lanka could significantly enhance bilateral trade, although uncertainties remain, a Bangladeshi economic analyst said.

Speaking to The Island Financial Review economist Jamal Uddin said that both nations have substantial opportunities for economic collaboration, particularly in regional trade. Bangladesh currently imports more from Sri Lanka, but there is optimism among businessmen that the situation may improve under the new government led by Nobel laureate Dr. Muhammad Yunus.

Uddin added: ‘The recent political upheaval in Bangladesh, including the resignation of former Prime Minister Sheikh Hasina, has impacted trade, but business leaders are hopeful that stability will return, enabling better trade relations.

‘The prospects of a FTA is especially appealing as it could lower tariffs and boost exports from Bangladesh to Sri Lanka, particularly in sectors like pharmaceuticals, paper and cement.

‘Bangladesh’s trade deficit with Sri Lanka has been growing, with Sri Lanka exporting more to Bangladesh than it imports. In the fiscal year 2022-23, Bangladesh’s trade deficit with Sri Lanka was USD 1.63 million, and this gap is expected to widen. Despite this, Bangladeshi exports to Sri Lanka have shown some growth, particularly in goods like medicines, ready-made garments and home textiles.

‘The FTA negotiations have been ongoing, with technical committees from both countries working on the details. If successful, the FTA would be Bangladesh’s first with any country, and it is expected to make regional trade more efficient by potentially reducing import-export times by 3 to 4 days if Sri Lankan ports are used.’

Meanwhile, a Sri Lankan businessman said: ‘Businessmen of Dhaka feel that everything is not normal yet. But they are optimistic that the situation will soon be under the control of the new government. Sri Lankans are doing well in the energy sector in Bangladesh and the recent political problem could be a storm in a tea cup.

‘Businessmen are optimistic that the new government will work to improve the business environment, especially since their eyes are on regionally focused. We urge the creation of an enabling business- friendly environment for boosting bilateral trade in this region.

‘In the case of Sri Lanka, Bangladesh depends on it for some goods and services. Recently, Bangladesh participated in a trade fair in Colombo and Bangladeshi businessmen are now looking to strengthen opportunities for trade development. Data found that both sides are eagerly waiting for a FTA that could increase business volumes.’

According to Abdul Awal Mintu, a former president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), there is a good relationship between Dhaka and Colombo.

Mintu said the opening of LCs and import-export activities had been disrupted during the uprising. He believed that the situation will be normalized soon.

‘Statistics indicate that Bangladesh’s imports from Sri Lanka are increasing. However, the export of products to Bangladesh is also increasing from Sri Lanka. Overall, the bilateral trade gap is currently in favor of Sri Lanka, he explained.



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Pelwatte Dairy commissions Sri Lanka’s largest dairy effluent treatment plant to advance ESG leadership and global market readiness

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Akmal Wickramanayake, Managing Director of Pelwatte Dairy Industries Limited, unveils the commemorative plaque to officially inaugurate the company’s Effluent Treatment Plant (ETP) at its Buttala manufacturing facility, reaffirming Pelwatte Dairy’s commitment to environmental stewardship, ESG compliance, and sustainable dairy processing.

Pelwatte Dairy Industries Limited has successfully commissioned its state-of-the-art Effluent Treatment Plant (ETP) at its Buttala manufacturing facility, marking a significant milestone in the company’s journey toward environmental stewardship, ESG compliance, and responsible dairy processing.

This facility is the largest Effluent Treatment Plant within a dairy processing operation in Sri Lanka, underscoring Pelwatte Dairy’s commitment to aligning its operations with global environmental standards and strengthening its position in international markets.

Strategic Commitment to ESG and Responsible Growth

This investment reflects a deliberate and forward-looking strategy by the Board of Directors to embed Environmental, Social, and Governance (ESG) principles into core operations. As Pelwatte Dairy continues to scale its processing capacity and expand its export footprint, environmental compliance has become a central pillar of sustainable growth.

The ETP has been designed to meet the increasingly stringent environmental expectations of Western, European, and Far Eastern markets, where compliance with wastewater discharge standards, environmental reporting, and sustainability practices are essential for market access.

Future-Proofed Design for Scalable Growth

The facility has a base treatment capacity of 250 m³ per day, with the engineered capability to handle peak volumes of up to 325 m³, representing approximately 30% additional capacity to accommodate future growth in processing volumes. [ETP Opening | Word]

This future-ready design ensures that Pelwatte Dairy can maintain consistent environmental performance even under high production scenarios, reinforcing the company’s commitment to long-term compliance, operational resilience, and responsible expansion.

Advanced Technology Supporting Global Compliance

The ETP integrates advanced treatment technologies, including:

Integrated Dissolved Air Flotation (IDAF)

Anaerobic and Enhanced Sequential Batch Reactor (AnSBR/eSBR) systems

Dedicated CIP wastewater management

Real-time automated process monitoring

Screw press sludge dewatering

These systems ensure high treatment efficiency and compliance with critical environmental parameters such as Biological Oxygen Demand (BOD), Chemical Oxygen Demand (COD), and nutrient discharge limits.

The plant is fully aligned with Sri Lanka’s stringent Central Environmental Authority (CEA) discharge standards and supports adherence to ISO 14001 Environmental Management System (EMS) practices, reinforcing Pelwatte Dairy’s structured approach to environmental management and continuous improvement.

Regulatory Engagement and Endorsement

The inauguration ceremony was attended by distinguished representatives from the Board of Investment (BOI) Environmental Division and Central Environmental Authority (CEA) provincial and district offices, reflecting strong regulatory engagement and endorsement of the environmental standards achieved through this investment.

Their presence underscores Pelwatte Dairy’s proactive approach in working closely with regulatory authorities to ensure compliance with national environmental frameworks while aligning with global best practices.

Enhancing Global Credibility of Sri Lankan Dairy

With this development, Pelwatte Dairy strengthens its position as a responsible and globally competitive dairy processor, capable of meeting the environmental expectations of leading international buyers and regulatory bodies.

This initiative not only enhances the company’s ESG profile but also contributes to elevating the sustainability standards of Sri Lanka’s dairy industry.

Acknowledgements

Pelwatte Dairy extends its sincere appreciation to its project team, operational staff, consultants, regulatory authorities, and partners for their contributions. Special recognition is extended to Industrial Solutions Lanka (Pvt) Limited for their engineering expertise and successful project delivery.

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Port City Colombo Forum in Dubai positions Sri Lanka as South Asia’s gateway for UAE business expansion

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Prof. Arusha Cooray, Ambassador of Sri Lanka to the United Arab Emirates

Exclusive invitation-only engagement at the Ritz-Carlton DIFC brought together approximately 200 senior UAE business and diplomatic leaders to explore Sri Lanka’s role as a platform for regional growth

The Embassy of Sri Lanka in the United Arab Emirates and the Consulate General of Sri Lanka in Dubai and the Northern Emirates, in collaboration with Colombo Port City Economic Commission and CHEC Port City Colombo Pvt. Ltd., hosted Globalisation and the Sri Lankan Opportunity – From Recovery to Relevance: Sri Lanka’s Moment in the Evolving Global and Regional Economy, an invitation-only diplomatic and investment engagement at The Ritz-Carlton, Dubai International Financial Centre.

The forum brought together approximately 200 senior leaders from across UAE corporates and business chambers alongside Sri Lanka’s most senior diplomatic and investment representatives – among them senior executives from Sobha Realty, Binghatti, Oracle, Emirates Airlines, First Abu Dhabi Bank, JLL, Cushman & Wakefield, CBRE, IFS, Danube and Samana Developers – reflecting the depth of interest from the UAE’s leading industries in Sri Lanka’s evolving economic proposition.

Opening the forum, Prof. Arusha Cooray, Ambassador of Sri Lanka to the United Arab Emirates, set the tone for a morning of substantive dialogue, speaking to the depth and durability of the UAE–Sri Lanka partnership, one built on decades of trade, people, and shared economic ambition, and affirming Sri Lanka’s commitment to taking that relationship into a new chapter defined by what Sri Lanka can offer UAE businesses seeking to grow their presence across South Asia.

The keynote address was delivered by Ghanim Al Falasi, CEO of Falak Tayyeb Platinum and Senior Vice President/Director General’s Office for of Dubai Silicon Oasis (DSO), who drew on over a decade of senior leadership experience in the UAE’s innovation and technology ecosystem to frame the question of what South Asia’s emerging platforms offer to forward-looking UAE businesses. He noted that while Dubai provides global access to capital and logistics, Colombo offers strategic access to South Asia, and that together the two cities can function as complementary platforms serving different but mutually reinforcing roles in the regional economy.

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The Ceylon Chamber of Commerce to hold 187th AGM

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The Ceylon Chamber of Commerce will convene its 187th Annual General Meeting on Thursday, 25th June 2026, at 5.30 PM at The Forum, Cinnamon Life.

This year’s gathering welcomes His Excellency Andrew Patrick, High Commissioner of the United Kingdom to Sri Lanka, as Chief Guest, who will deliver the keynote address. His presence reflects the close and longstanding ties between Sri Lanka and the United Kingdom, and is especially fitting at a juncture when strengthening trade ties, investor confidence, and sustained economic reform remain front of mind for the nation’s business community.

Chairperson of the Ceylon Chamber, Krishan Balendra, will also address the audience, reflecting on a year of progress and setting out the priorities ahead. His remarks will provide an overview of the Ceylon Chamber’s continued push to sharpen private sector competitiveness, drive evidence-based policy advocacy, and anchor long-term economic stability.

Following the formal proceedings, members and guests are invited to a networking reception.

Ceylon Chamber members wishing to attend may register by contacting Alikie at alikie@chamber.lk / 9411 558 8805.

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