"I see no major difficulty in the negotiation. We are hopeful that the FTA will come into force next year," Manel de Silva, joint secretary and director general of the Department of Commerce of Sri Lanka, told newsmen at the conclusion of the two-day talks in Dhaka.

The joint secretary level talks began in Dhaka Saturday. Elias Ahmed, leader of a six-member Bangladesh team, and his Sri Lankan counterpart de Silva led their sides to the meeting at the Ministry of Commerce.

"I hope it will take a year to complete the negotiation and sign the deal," said Elias after the meeting.

The FTA is now a global phenomenon and 80 percent of the global trade is done on bilateral basis, he mentioned.

"We have no option but to remain in the mainstream. If we fail to adjust to the latest development, we will run the risk of being sidetracked."

He said the rules of origin for the FTA would be as simple as possible and both countries are yet to prepare a negative list of products.

Under the rules of origin, two countries decide what should be the value addition of a product to be eligible for free trade. A negative list mentions the products which do not enjoy zero tariff facility.

The two countries will sit again in January in Colombo to discuss the FTA modalities, Elias added.

De Silva mentioned that trade, service and investment will increase once the FTA is signed.

"We are very optimistic about signing the FTA and can see prospect for increasing investment in Bangladesh," he said.

De Silva mentioned that Sri Lanka has agreed to consider Bangladesh as a least developed country for preferential treatment. "But it is still to be worked out what types of preferential facilities would be given to Bangladesh and we don't expect this to be a one-way thing."

Referring to the India-Sri Lanka FTA, she said it is very difficult to presume the benefits of free trade.

"The products we did not even dream of exporting to India are now going there after implementing the FTA," she observed.