Indo-Lanka talks on economic cooperation

Official talks between the Governments of Sri Lanka and India on Trade, Investment and Economic Cooperation were held last week in Colombo, co-chaired by Secretary to the Ministries of Finance and Planning and Economic Development Dr. P.B. Jayasundera and Commerce Secretary of India Shri S.R. Rao.

The discussions covered the gamut of economic, trade and development-related issues between the two countries.

It was agreed that India and Sri Lanka will continue to work on building on the existing economic relationship to achieve the shared goals of poverty alleviation, employment creation and economic development.

Recognising that India is Sri Lanka's leading trade partner and that bilateral trade between the two countries has now reached five billion US dollars, it was agreed that the potential which remains to expand bilateral trade further to the tune of US$ 10 billion would be exploited in the next three years.

It was also agreed that increased attention of both countries would be focused on achieving a more equitable balance in trade between the two countries through optimal utilisation of the opportunities and complementarities in the two economies.

Review of several elements in the current bilateral trade regime in relation to the India-Sri Lanka Free Trade Agreement will be undertaken over the coming months to achieve this objective with respect to negative lists, non-tariff barriers, mechanisms for resolving trade disputes, removing prevailing quantity restrictions for exports from Sri Lanka and facilitation of entry of value added products.

India has recently emerged as a pre-eminent development partner in Sri Lanka's public investment strategy through the provision of assistance and credit totalling US$ 1.75 billion.