Singapore is looking at setting up a free trade zone for Singaporean investors in Sri Lanka, before expanding formal economic ties between the two countries.
A team from Jurong is studying the question of a free trade zone for Singaporean investors in Sri Lanka a Foreign Ministry statement said on Thursday.
Sri Lanka is in the process of negotiating a Comprehensive Economic Partnership with Singapore, but at this point the Singaporean government is cooling off.
Singapore wants the waters tested by the private sector before making formal commitments to expand trade ties with Sri Lanka.
“It was agreed with the new Singaporean Foreign Minister, George Yeo, that the business communities of the two countries should take the initiative in expediting pending negotiations with regard to a possible free trade agreement and the comprehensive economic partnership,” the statement said.
Singapore also wants “outstanding matters relating to the Prima Company in Sri Lanka” to be settled soon.