Lanka and India to activate CEPA by June

Sri Lanka and India are committed to get the Comprehensive Economic Partnership Agreement (CEPA) activated by June this year to help both countries overcome challenges in trading services, said Executive Director Institute of Policy Studies Dr. Saman Kelegama.

He was addressing a seminar on Comprehensive Economic Partnership Agreement with India organised by the Ceylon Chamber of Commerce.

He said both countries are entangled in a complex web of regulations in services which need to be relaxed.

Regulations such as licensing and registering are hindrances to liberalising services. Domestic regulations are more prominent in services than in goods which are used to maintain standards, streamline payments, safeguarding domestic employment and related national issues.

Under the CEPA, Sri Lanka has made request lists for service sectors such as tourism, retail, finance, insurance, maritime and aviation while India's request list includes education, construction, engineering, ICT, transport and insurance sectors for liberalisation.

India offers its professional services in the health, leisure and retail sectors. The largest number of tourist arrivals from India was recorded in 2002 since the visa on arrival policy was introduced in 2002. The number of SriLankan Airline tours to India has increased to 10 destinations.

Unilateral liberalisation measures taken by both countries have moved services between the countries.

Sri Lanka is making arrangements for professional bodies to sign Mutually Recognised Agreements (MRAs) with their counterparts. It is vital that all professional bodies have a preferential regulatory framework to enter into MRAs.

Executive Director Research BOI, Dr. Nihal Samarapuli said the investment agreement under the CEPA will stimulate investment flows and the beneficiaries will be citizens and companies of both countries.

He said issues arising in investments will be solved through an investor to state dispute resolving mechanism where investors could seek recourse through a neutral forum.

Chairman, Committee on Trade in Services CCC Trade Cell Dr. Parakrama Dissanayake said port restrictions in Indian states pose difficulties to Sri Lankan exporters.

(LF)