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Sri Lanka offers Pakistan exclusive industrial zone: report

Aug 23, 2009 (LBO) - Sri Lanka has offered an industrial zone exclusively for Pakistan in a bid to promote inward investment from South Asian and Middle East regions, a media report said.
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Sayeed was quoted as saying that he will promote Pakistani firms to set up joint ventures in Sri Lanka and promote trade and investment links using the benefits of a South Asian Free Trade Arrangement (SAFTA).

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Multilateral trade liberalization has however been slow in South Asia.

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India has led trade liberalization in recent years, striking bi-lateral deals such as the Indo Lanka Free Trade Agreement.

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At one time Sri Lanka was a leader in economic liberalization but India and Maldives are now ahead.

Attempts to expand the deal into a Comprehensive Economic Partnership Agreement covering services have been stalled by rising protectionist power of some businesses that have strong political connections in Sri Lanka.

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The Sunday Times said Sayeed wanted to remove non-tariff barriers to trade and liberalize trade in services to achieve intra-regional trade of 20 billion US dollars by 2010.

The Sunday Times newspaper quoted visiting chief of a regional business chamber,

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