Sri Lanka's exports to India increases three-fold after FTA - Indian High Commissioner

by Surekha Galagoda

India's exports to Sri Lanka have increased nine-fold while Sri Lanka's exports to India have increased three-fold after the signing of the Free Trade Agreement (FTA) between India and Sri Lanka, said India's High Commissioner in Sri Lanka Alok Prasad.

Addressing the 44th Anniversary celebrations of the Sri Lanka Chamber of Small Industry, the chief guest Alok Prasad said that the FTA should be developed in an asymmetrical manner. He said that they want the Comprehensive Economic Partnership Agreement (CEPA), which will be signed next year also to be a success like the FTA. `

Prasad said that Lions Industries and Bharati Airtel, which started as small Industries, have today grown to be Fortune 500 companies. The small industries have not only recorded tremendous growth but we also value the contribution they make to the economy, which is very important.

In the early 1980's there were less than one million small sector industries but today it is more than 13 million. Now they contribute to half of the national economy and provide employment to half of the population. As employment providers they are only second to the agricultural sector, said the High Commissioner.

He said certain precautions should be taken in the globalised world to protect the small sector, as it is more prone to external shocks. The High Commissioner said that there are two large economies - India and China and initially they accounted for more than 70% of the world's economy prior to becoming colonies.

At present Companies and countries should reorient to face the challenges of globalisation. We signed the FTA with Sri Lanka with this in mind and today it is a success story with trade increasing from US$ 250mln to US$ 2.3 bin.

Earlier India gave a lot of support to the Small industrial sector but now we have to rethink the strategy again in the present scenario. President, SLCSI, Aloy Jayawardene said that the Ministry of Industrial Development has prepared a cabinet paper to be presented in Parliament to add to our name "Medium.

Then we will be known as the Sri Lanka Chamber of Small and Medium Industry. They hope to achieve it before their 45th anniversary celebrations.

Twenty-four companies received Industrial excellence awards at the ceremony.

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