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| Sunday, 12 June 2005 |
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CEPA talks to be completed by year's end by Surekha Galagoda The Comprehensive Economic Partnership Agreement (CEPA) negotiations would be completed by the end of the year due to the enormous potential for intensified economic and business activities. This was decided on by the Indian External Affairs Minister Natwar Singh and Sri Lanka's Foreign Affairs Minister Lakshman Kadirgamar when they co- chaired the 6th session of the Sri Lanka India Joint Commission meeting in Colombo on Friday. CEPA extends beyond goods to include services and investment. The Joint Commission said the Indo Lanka FTA which had helped enhance bilateral economic and business activity now represented a two way trade volume of US$ 1.8 billion. Therefore both sides agreed to address implementation issues and realise the full potential of the agreement which would help expedite the CEPA process. The two ministers signed two bilateral agreements relating to the education sector and an MoU on Small development projects was also signed. The MoU on small development projects will give a new dimension to the rural economy as it will be community based. The project has funds to the tune of US$ 3 million and all its benefits will be given to the community. In addition Minister Singh said that India would give a grant of Rs 10 million to finance a pilot project to set up 20 e-libraries or 'nenasalas'. They would also assist to set up science laboratories and libraries in 30 schools in the Central Province. The terminal dates for the US$100 million line of credit have been extended while it was agreed to use the balance available from the credit facility given for the import of wheat for the import of passenger buses from India. Shipments under the petroleum line of credit have begun, he said. In the tourism and aviation sectors the need for greater cooperation in joint promotional activities such as luxury cruise packages was stressed to attract tourists to the region. Airlinks have grown substantially whereby over 100 flights operated between Sri Lanka and India every week. Officials of the two countries said that the frequency of air travel between the two countries could be further increased by additional liberalisation of the aviation sector, particularly with regard to flights to major Indian cities. Project investments in the power, energy and transport sectors were discussed. The National Thermal Power Corporation would submit a detailed proposal for setting up a coal/LNG power plant in Sri Lanka. It was agreed to explore the further development of the oil storage complex in Trincomalee into an expanded facility catering to the region. |
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