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| Sunday, 17 July 2005 |
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CEPA with India will enhance economic ties by Hiran H. Senewiratne The Comprehensive Economic Partnership Agreement (CEPA) with India will help enhance the economic relationship once it is launched next year, said Director General of Commerce, Department of Commerce K.J. Weerasinghe. "The objective of CEPA is to improve the services and investment with India to a qualitative level," Weerasinghe told a seminar on CEPA with India: Opportunities for Trade and Investment". He said that broadening the Indo-Sri Lanka Free Trade Agreement (FTA) with the implementation of CEPA in 2006 will help to integrate trade between the two countries. He said that we have to further liberalise trade between two countries by taking the economic implications into consideration. Weerasinghe called upon local exporters to go for value addition when they access the Indian market.He also said that we have to address a series of issues when Indian exports are flooding Sri Lanka. Executive Director Institute of Policy Studies Dr Saman Kelegama said that CEPA will open a window of opportunities to both countries specially in the service sector. He said that trade liberalisation will create opportunities in the service sector. It is said that the service sector contribution to the global trade is more than 20 per cent. Due to the identification of the intangible and overlapping nature of the service sector, the World Trade Organisation (WTO) introduced a mode to follow, he said. Most countries are reluctant to liberalise the service sector as they feel it would affect the sovereignty of the state. Liberalising the service sector will increase the influx of foreign companies which will unduly influence the government, he said.Sri Lanka could concentrate on the service sector industries including telecommunication, transport, health and tourism when CEPA comes into play. Dr Kelegama said that the influx of Indian tourists to Sri Lanka has increased from 8 per cent to 20 per cent with the liberalisation of visa procedures. As a gesture India had launched a number of new destinations for our flights. He said that the tourist sector could be stimulated through the Memorandum of Understanding. Kelegama also called upon exporters to relax the regulatory framework in professional bodies such as Sri Lanka Medical Council and the Institute of Engineering to attract specialist personnel to Sri Lanka. Director, Economic Research Department Dr H.N. Thenuwara said that the governments in India and Sri Lanka have agreed to introduce CEPA with more scope. He said that the FTA along with CEPA will enhance investment specially in services and investments to Sri Lanka. Thenuwara said financial services show prospects for further
liberalisation with India. Executive Director (Research) Board of Investment
(BOI) Dr N. Samarappuli said that having a proper investment plan will
enhance investment opportunities.He said that CEPA will deepen and broaden
the scope of the FTA. |
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