It said that under the deal signed in 2002, Pakistan has granted duty free access for Sri Lankan products like tea and betel leaves, albeit with quotas, coconut products, natural rubber, spices, natural graphite, paper boards and articles of aluminium.
"The final phase of liberalisation will provide duty free access for an additional 4,000 products," it said.
These include fish, meat, and vegetable products, foliage and plants, sugar and biscuits, pastry and cakes, mineral products, fibre boards, leather and leather-based products, footwear, gems and jewellery, value-added copper products, electrical items, printed circuits, bicycles, boats and floating structures.
"Pakistan has become the second largest trade partner for Sri Lanka in the south Asian region," the statement said.
Total trade between the two countries increased to 30 billion rupees (270 million US dollars) in 2008 from 16 billion rupees in 2005, it said. Sri Lanka's exports to Pakistan also increased to eight billion rupees in 2008 from four billion rupees in 2005.
Exports from Sri Lanka to Pakistan are mainly primary products such as coconut products, tea, rubber and rubber-based products.
Imports from Pakistan mainly consist of rice, vegetables, pharmaceuticals, potatoes and textiles and apparel.
Pakistan had granted 100 percent immediate tariff concessions on 206 items after the free trade deal was signed in 2002 while Sri Lanka granted immediate duty free access to Pakistan for 102 products.
Under the deal's Rules of Origin, only products originating from Pakistan and Sri Lanka would benefit from the agreement, according to the Ceylon Chamber of Commerce.
Other products that have some imported materials as inputs have to have 35 percent value addition.
Under cumulative rules of origin to meet the 35 percent value addition criteria, a producer can use raw material imported from either of the contracting parties up to the value of 10 percent and the remaining 25 percent to be met through value addition at home.Exporters can obtain concessions under the FTA from the Department of Commerce which is the authority that is monitoring the implementation of the agreement.
The Sri Lankan exporters must register with the Department and obtain Certificates of Origin indicating that they meet all the requirements to benefit from duty concessions granted by the free trade deal.