Trade between Lanka and India to hit a new high

by Lalin Fernandopulle

Trade between Sri Lanka and India will hit at a new high with all barriers being broken down soon to facilitate the speedy delivery of goods between the two countries, Indian Prime Minister Narendra Modi told the Sri Lanka business community in Colombo on Friday.

The Indian Premier reiterated his commitment to take trade between the two countries to a better level as both countries are keen to explore new opportunities for trade and investment. “I am confident that with the new environment in Sri Lanka supported by peace and goodwill in the country trade relations between Sri Lanka and India will grow exponentially in the coming years. I am aware of Sri Lanka’s concerns with regard to trade with India. I will address these issues when I get back”, Modi said.

India, Sri Lanka trade had grown over the years with the setting up of the Free Trade Agreement (FTA) over a decade ago. Non tariff barriers impeded trade growth and both countries have pledged to bring about a viable solution.

Trade between the two countries had grown 128 percent with the signing of the FTA several years ago. I am certain that it will grow manifold in the years ahead with healthy cooperation between both countries.

Modi’s visit was historic as both countries are keen to support each other in various spheres with mutual trust.

India is one of the fastest growing countries and I am keen that Sri Lanka, our closest neighbour should benefit from that growth, Modi said.’

India and Sri Lanka signed a Customs Cooperation Agreement to facilitate easy and speedy trade between the two countries- a new line of credit of US$ 328 million to develop the railway in Sri Lanka, set up a Joint Task Force to develop ocean economy, commence work at the Sampur coal power project, launch direct Air India flights to Colombo, offer visa on arrival for Sri Lankans and develop the upper tank farm of the China Bay oil installations.

“India constitutes a large market where our cooperation can benefit Sri Lanka. Differences in size are not a barrier if we use our strength and size for mutual benefit. Many South Asian countries have benefited from our strength. We will work to integrate our markets and make trade smoother” Modi said.

The Indian Premier said that discussions will resume soon to address issues on the Comprehensive Economic Partnership Agreement (CEPA). CEPA discussions had been in the backburner for several years due to Sri Lanka’s belief that it was more in favour of India.

“There has been a plenty of transformation in India during the past 10 months. During the last quarter India was the fastest growing economy in the world. Global confidence in India is at a new level.

Sri Lanka will be a major beneficiary of India’s growth”, the Indian Premier said.