Expressing his optimism about the outcome of free trade agreement (FTA), he said the deal would pave the pay for greater economic cooperation between the two countries.

Munasinghe said this when he called on Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Abdul Awal Mintoo at the federation office.

They discussed matters relating to expansion of bilateral trade, investment and economic cooperation as well as the FTA negotiations beginning in Dhaka tomorrow.

Citing their free trade arrangement with India as an example the Sri Lankan envoy said during the pre-FTA trade, Sri Lankan export to India was worth $34 million, which increased to over $200 million in 2003, in a span of only three years.

"During pre-FTA times only 1,300 tourists from India visited Sri Lanka and in 2003 tourists from India will exceed 125,000," he observed.

The high commissioner said Bangladesh can export cement and pharmaceuticals to Sri Lanka taking the opportunity of the huge demand of these products in the Indian Ocean island nation.

"As peace is taking shape in Sri Lanka, there would be a boom in the construction industry, creating a huge demand for cement. Bangladeshi cement can fulfil the demand," he said.

About trade and commerce between Bangladesh and Sri Lanka, Munasinghe mentioned non-interaction between business communities of the two countries as a drawback, which can be reduced through frequent visits.

The high commissioner said his country produces huge quantity of rubber mattresses and other rubber products which could be exported to Bangladesh. He invited Bangladeshi businessmen to make joint venture investment in this sector.

Abdul Awal Mintoo said Bangladesh also produces a plenty of raw rubbers and Sri Lanka can help Bangladesh to develop the sector. He invited Sri Lankan businessmen and experts to visit Bangladesh for setting up joint venture rubber industry here.

The FBCCI president, recalling his visit to Colombo, identified absence of direct air link between Bangladesh and Sri Lanka as one of the main constraints on enhancement of trade and investment between the two Saarc countries.

"Bilateral trade between Bangladesh and Sri Lanka is not satisfactory," he said requesting the high commissioner to take necessary initiatives to expand trade and facilitate direct air link for the benefits of both the countries.

Mintoo mentioned that a delegation of Bangladesh will visit Sri Lanka from November 30 this year to attend the Bangladesh, India, Myanmar, Sri Lanka, Thailand Economic Cooperation (BIMSTEC) conference.