The Hindu : India, Sri Lanka to widen scope of trade

Online edition of India's National Newspaper
Wednesday, Nov 26, 2003

Business

Business

India, Sri Lanka to widen scope of trade

By Our Staff Reporter

NEW DELHI, NOV. 25. To widen the scope of trade and commerce between India and Sri Lanka, the two neighbouring nations will soon sign CEPA (Comprehensive Economic Partnership Agreement), the talks for which have entered the final stages.

The new pact will also incorporate the new segments of the industry including services and investments besides the other sectors of economic cooperation.

"The new agreement will replace the existing FTA (Free Trade Agreement) to give a major boost to the old economic ties between them," said the Sri Lankan Commerce and Consumer Affairs Minister, Ravi Karunanayake, here today after taking part in the 19th India Economic Summit, jointly organised by the Confederation of Indian Industry (CII) and World Economic Forum (WEF).

Stating that the FTA had been a great success and has also helped reduce the trade gap, Mr. Karunanayake, said bilateral trade crossed $1 billion mark last year with Indian exports touching $831 million as compared to $604 million in 2001. "CEPA will felicitate trade and ensure removal of non-tariff barriers".

Informing that the island nation had formulated a comprehensive economic policy and was also opening its economy, the Minister said the Sri Lankan Government had started the privatisation process in a transparent manner.

"We are committed to creating an enabling environment for foreign investors. We also invite our Indian friends to do business with us".

Asserting that Indians have always been in the forefront in investing in Sri Lanka, Mr. Karunanayake said already Indian Oil Corporation was doing big business and soon it would have its own oil storage farm and 100 pumping stations throughout the island. "Moreover, with more Indian private aviation companies such as Sahara Airlines and Jet Airways keen on commencing their operations in Sri Lanka, Indian corporate will find the island nation as a preferred destination".

Informing that during the summit they were successful in getting two big proposals which included opening of a theme park and shifting of an industrial plant, the Minister said after the opening up of three sectors last year, they had seen three Indian companies entering all the three in a big way.

"We have Tata-owned Videsh Sanchar Nigam in the telecom sector, IOC in petroleum and Life Insurance Corporation in the insurance sector. Then there are TITES, Apollo, CEAT, L&T and NIIT whose participation has been significant in our economy," he added.

Printer friendly page
Send this article to Friends by E-Mail

Business