Nature’s Secrets Chairman says:

CEPA detrimental to Sri Lanka

by Sanjeevi Jayasuriya

The Free Trade Agreement (FTA) between India and Sri Lanka has failed to deliver what was expected of it. Trade has not improved to the anticipated level and trade under the FTA remains less than five percent, business leader and Chairman and Managing Director, Nature’s Secrets, Samantha Kumarasinghe said.

“We should not go for any further agreements with India, especially CEPA which is detrimental to the country and not needed.

The Government should look at countries such as China and Eastern Europe. Neighbouring countries such as Pakistan and Bangladesh which have populations of 172 million and 140 million, present huge market opportunities, he said.

Stressing on the facts ignored by local officials, Kumarasinghe said that Chapter 4 of Article 2 under the proposed CEPA refers to the movement of natural persons.

If CEPA is signed Indians who come under CEPA could easily find jobs at Indian managed MNCs and other Indian companies in Sri Lanka. India has 4.5 million unemployed graduates, he said.

Most multinational companies in Sri Lanka are under Indian control or have headquarters in India. They send Indians to work in Sri Lanka without proper work permits.

Indian companies operating in Sri Lanka do the same by giving work to Indians who come here on tourist visas.

They go home every few months and return. The tourist arrival figures go up and the Tourist Board is happy.

“Although some officials openly praise India for helping Srilankan Airlines and our tourism industry, Sri Lankan industries have become poorer after business dealings with India. Some close down while others sell off to foreigners,” Kumarasinghe said. CEPA is a carefully thought out and well drafted plan of Indian officials to expand the Indian economic empire. Its is a binding agreement that is irrevocable.

Signing a framework agreement first, to which annexures can be added is the biggest danger.

Kumarasinghe queried as to whether CEPA was an economic partnership or economic invasion.

The BOI already allows what is envisaged under CEPA. Under the WTO agreement, Sri Lanka has already given most of these concessions to the world. Concessions granted under CEPA can be withdrawn only after six months’ notice.

“What BOI offers is unilateral and can be revoked at our discretion, CEPA being a bilateral agreement cannot be changed or revoked.

Therefore, India can compel us to stick to the terms and conditions using their might,” he said. WTO commitments are given through WTO only and no country can push us directly even if we change any tariffs.

The WTO negotiation process to find remedial solutions takes about three years giving ample time for small countries.

Termination of an agreement such as CEPA will involve payment of damages which Sri Lanka cannot afford, Kumarasinghe said.