India, Sri Lanka to double trade to $ 10 billion by 2015

The Union Minister of Commerce, Industry and Textiles, Shri Anand Sharma set a target to double the trade turnover between India and Sri Lanka from the existing level to US$ 10 billion by the year 2015.

Speaking at the inauguration of 'The India Show - Land of Limitless Opportunities' in Colombo, Shri Sharma highlighted India's abiding commitment to be a friend and a partner of Sri Lanka in meeting its aspirations of growth and development.

"We have set the target to double the trade to $ 10 Billion by 2015. Captains of industry have accepted and endorsed it", said the Minister.

Shri Sharma, after his discussions with the Sri Lankan leadership in the morning, said that India will assist Sri Lanka in the setting up of Engineering and Automobile components Specialised Export Zone (SEZ) which would be located near Trincomalee and will promote exports to the production chains in India. The proposed Engineering and Automobile components hub will also have a skills training Institute. The Minister also said that India and Sri Lanka will work together towards the settling up of a pharmaceutical manufacturing hub in Sri Lanka capitalising on the vast strides made by Indian pharmaceutical industry in meeting the quality drug requirements worldwide at affordable prices. It was also agreed to set up a joint task force which will submit its report within 90 days and would also work on the implementation of establishment of the two SEZs.

The composition of the Joint Task Force from India would be finalised before the Minister's departure.

Shri Sharma, highlighting the global trend of formation of regional trade blocks and bilateral Economic Agreements, underlined the need for economic integration within South Asia, which could be part of larger Asian trade and economic architecture.

The Minister said that India was not seeking reciprocity in trade and economic relationship with Sri Lanka and assured Sri Lanka of preferential access to the large Indian market.

The signing of Comprehensive Economic Partnership Agreement (CEPA) will make the current economic engagement more comprehensive by bringing more investment and services into Sri Lanka.

Shri Sharma said that the two Commerce Secretaries will resume dialogue on CEPA, and resolve all related issues.

He also appreciated the large infrastructure projects being implemented by the Indian companies including the Public Service Utilities (PSUs) in Sri Lanka such as Railway projects and the Sampur power plant project. The Minister said that India which is among the top investors in Sri Lanka, is Sri Lanka's largest trading partner and source of the largest number of tourist arrivals to Sri Lanka.

Also present were Minister of Economic Development Basil Rajapaksa, Minister of Industry and Commerce Rishad Bathiudeen, Senior Minister of International Monetary Cooperation Sarath Amunugama, Senior Minister for Urban Affairs A.H.M. Fowzie and Minister of Traditional Industries and Small Enterprise Development Douglas Devananda.