Sri Lanka's exports to India increases three-fold after FTA -
Indian High Commissioner
by Surekha Galagoda
India's exports to Sri Lanka have increased nine-fold while Sri
Lanka's exports to India have increased three-fold after the signing of
the Free Trade Agreement (FTA) between India and Sri Lanka, said India's
High Commissioner in Sri Lanka Alok Prasad.
Addressing the 44th Anniversary celebrations of the Sri Lanka Chamber
of Small Industry, the chief guest Alok Prasad said that the FTA should
be developed in an asymmetrical manner. He said that they want the
Comprehensive Economic Partnership Agreement (CEPA), which will be
signed next year also to be a success like the FTA. `
Prasad said that Lions Industries and Bharati Airtel, which started
as small Industries, have today grown to be Fortune 500 companies. The
small industries have not only recorded tremendous growth but we also
value the contribution they make to the economy, which is very
important.
In the early 1980's there were less than one million small sector
industries but today it is more than 13 million. Now they contribute to
half of the national economy and provide employment to half of the
population. As employment providers they are only second to the
agricultural sector, said the High Commissioner.
He said certain precautions should be taken in the globalised world
to protect the small sector, as it is more prone to external shocks. The
High Commissioner said that there are two large economies - India and
China and initially they accounted for more than 70% of the world's
economy prior to becoming colonies.
At present Companies and countries should reorient to face the
challenges of globalisation. We signed the FTA with Sri Lanka with this
in mind and today it is a success story with trade increasing from US$
250mln to US$ 2.3 bin.
Earlier India gave a lot of support to the Small industrial sector
but now we have to rethink the strategy again in the present scenario.
President, SLCSI, Aloy Jayawardene said that the Ministry of Industrial
Development has prepared a cabinet paper to be presented in Parliament
to add to our name "Medium.
Then we will be known as the Sri Lanka Chamber of Small and Medium
Industry. They hope to achieve it before their 45th anniversary
celebrations.
Twenty-four companies received Industrial excellence awards at the
ceremony.
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