The Pakistan- Sri Lanka Business Forum (PSLBF) yesterday called on the Sri Lankan Government to extend swift trade incentives to attract Pakistan textile manufactures before they are whisked off by Bangladesh.

PSLBF President and Vice Chairman of Aero Asia Abdul Rauf Tabani told the Daily FT that unless the recommendations that were forwarded from the Pakistani textile industry were not implemented quickly the aggressive investment policy offered by their neighbour, Bangladesh, would attract a significant amount of business from Sri Lanka. The recommendations were submitted following a 22 member trade delegation to Sri Lanka several weeks ago under the request of trade, Commerce and Consumer Affairs Minister Jeyaraj Fernandopulle. The list was also forwarded to the BOI.

“During this meeting we were offered 500 acres to build a textile city but that is not enough. The recommendations of our textile people on the new Sri Lankan trade policy have been sent and if they are put in place soon then Sri Lanka can become a strong contender for Pakistan investment,” he said.

Insisting that regardless of Bangladesh’s efforts to open up their market with an aggressive economic policy, Sri Lanka still maintains an edge, Mr. Tabani cautioned that Sri Lanka cannot afford to become complacent.

“For example Pakistan and India came out with the same economic strategy half a decade ago but because of the political instability India managed to get ahead and today they have much better infrastructure. So it is essential that Sri Lanka not only match what Bangladesh is giving but extend 10% more to stay ahead,” he said. While maintaining that this was the “turning point” in the industry he urged Sri Lanka to catch and ride the wave before it was too late.

The PSLBF is also encouraging bilateral agreements with five MoUs valued at around US$ 5 million to be signed by President Mahinda Rajapaksea on his visit to Islamabad on Sunday in the areas of tea, chocolate, cables tourism and IT.

The forum, which was formed over a year ago has established close ties with the diplomatic and business institutions of the two countries and is concentrating on building strong relationships based on consistent interaction to promote trust between the two nations. The ensuing results are to be revealed by another delegation next year.