New chapter in Indo-Lanka ties :

Bilateral trade surpasses $ 4b

By Lalin Fernandopulle

As bilateral trade between Sri Lanka and India surpassed $ 4 billion, a new chapter was opened in Indo-Lanka trade ties with the first Joint Task Force (JTF) coming into being. Greater Indian market access for Lankan exporters and prompt resolution of trade obstacles are the other developments. “We are working to boost bilateral trade to $ 10 billion as trade ties have improved. The new understanding reached between the two countries is good for future bilateral trade,” said a top official of the Ministry of Industry and Commerce. Bilateral trade between the two countries totalled $ 4.087 billion in 2012 and in January-April 2013, it stood at $ 1.17 billion. During 2008, India allowed duty-free entry for three million pieces of apparel products from Sri Lanka without any restrictions under the ISFTA and in April 2013, the quota was increased to eight million pieces. A bilateral secretarial level commercial cooperation session was held on June 24. The Indian team was led by the Indian Commerce Secretary, S. R. Rao and the Sri Lankan team by the Secretary to the Ministry of Finance and Planning, Dr. P.B. Jayasundera with Industry and Commerce Ministry Secretary, Anura Siriwardena. At the meeting, agreement was reached to solve problems faced by exporters at both ends.

“As a result, Lankan exporters facing difficulties in Indian ports can contact the Department of Commerce to resolve the problem.

The understanding reached at the meeting has resulted in the removal of non-tariff-barriers faced by Lankan exporters accessing the Indian market,” a spokesman for the Ministry of Industry and Commerce said.

In 2012, to reap the maximum benefits of the existing mechanism, the two governments formed a Joint Task Force (JTF) that included government officials and private sector representatives. The Sri Lankan team at the JTF was led by Anura Siriwardena while the Indian team was led by Joint Secretary, South Asia, Arvind Mehta.

During the first JTF session, both sides discussed in-depth, ways and means to boost trade cooperation. Indian representatives focused on textiles, pharma and automotive components, while Sri Lankan representatives focused on maximum use of the FTA and removal of export quotas.

“We are happy with the results of the meetings in Colombo,” said Secretary Rao. “The JTF has decided to meet once in three months. We are looking forward to the second meeting in October or November this year. We want to see Sri Lanka’s exports to India grow further. We want to expand asymmetrical trade with the South Asia region and Sri Lanka is at the top of the list. South Asia is extremely important to us. India has liberalised its restrictions on the export of two fruits from Sri Lanka, mangosteen and rambutan,” he said.