ILCCI will enhance Indo-Lanka trade ties - Indian Finance Minister

The Indo-Lanka Chamber of Commerce and Industries (ILCCI) was launched by Indian Finance Minister P. Chidambaram in Colombo on Wednesday. He was on an official visit to Colombo to participate in the 60th Commonwealth Finance Ministers' meeting which commenced on Tuesday.

Minister Chidambaram, Minister of Investment Promotion Rohitha Bogollagama and Ceylon Chamber of Commerce (CCC) officials said that the new chamber, ILCCI would further enhance bilateral economic and trade relations between the two countries and remove roadblocks in the progress of Comprehensive Economic Partnership Agreement (CEPA).

Today we are celebrating the progress of the Free Trade Agreement (FTA) which was signed six years ago. Bilateral trade between the two countries was US$ 650 million at the time the FTA was signed. Following the FTA it surpassed the $ 1 billion mark in 2002 and $2 billion mark in 2005. It would pass the $3 billion mark in the next few years. The FTA was a win-win agreement and CEPA will also be a win-win agreement, Chidambaram said.

Chidambaram highlighted the growing economic relations between the two countries. India is the largest source of imports to Sri Lanka, second largest investor in Sri Lanka and the third largest destination for Sri Lanka's exports. Ninety percent of Sri Lanka's exports to India and 45% of Indian exports to Sri Lanka are under the FTA. The tourism sector is fast growing and last year 113,000 Indian tourists visited Sri Lanka. There are ninety flights a week between Colombo and nine Indian destinations, he said.

Chidambaram outlined the asymmetry in free trade between the two countries due to the size of the two economies adding that India is conscious of the asymmetry and Sri Lanka will benefit from it (GW)