Sri Lanka cabinet approves proposal on preferential trade agreement with Indonesia

Colombo, July 12 Sri Lanka's cabinet has approved a proposal to enter into a preferential trade agreement with Indonesia as a preliminary step to reach a long-term free trade agreement, a statement from the government information department said.

The statement on Tuesday added that Indonesia has been identified as a trade partner with suitable potential to build profitable trade relations for Sri Lanka, Xinhua news agency reported.

Earlier, Sri Lanka launched a fact-finding mission to explore avenues for an early entry into the Regional Comprehensive Economic Partnership (RCEP) free trade agreement, as announced by the Foreign Ministry in June.

A team of senior officials of the Sri Lankan government concluded the mission to Jakarta, Indonesia, on June 12-14, and Sri Lanka's strong interest in entering into RCEP was well received by ASEAN Secretary-General Kao Kim Hourn, and a number of ambassadors of RCEP members in Jakarta, said the Ministry.