The Hindu : Tamil Nadu News : India, Sri Lanka may sign economic partnership agreement by year-end

Online edition of India's National Newspaper
Tuesday, Aug 14, 2007
ePaper

Tamil Nadu

Tamil Nadu

India, Sri Lanka may sign economic partnership agreement by year-end

Special Correspondent

“The present situation on the island is conducive for investment”

“The trade relationship is increasing”
A positive sign for further growth

CHENNAI: India and Sri Lanka are likely to conclude negotiations on a Comprehensive Economic Partnership Agreement by the year-end, according to P.M. Amza, Deputy High Commissioner for Sri Lanka in Southern India.

Addressing the members of the Consultative Committee of City Chambers of Commerce (CCCCC) here on Monday, he said the 11th round of talks would be held in Colombo shortly. The draft text of the main agreement was under negotiation, while those of services, financial services and investments had been finalised.

The agreement would boost the bilateral trade. Talking to The Hindu later, Mr. Amza said: “The present situation on the island is conducive for investment… The trade relationship is increasing, and it is a positive sign for further growth. Sri Lankan Airlines is planning to increase the frequency of its flights to India to make it 100 from the present 94.”

He urged Indian businessmen to take advantage of the GSP Plus scheme that provided opportunity to export 7,200 items to the European Union with zero duty. “Since the signing of the Indo-Sri Lanka Free Trade Agreement (ISFTA), the Foreign Direct Investment flow into the island is on the rise. The Balance of Trade is heavily in favour of India. The ISFTA has also made India the third largest exporter, and trade is likely to touch $3 billion this year,” he said.

Sri Lankan Deputy High Commission Minister (Commercial & Economics) in Chennai, H.M.B. Herath said: “Sri Lanka is the most attractive investment destination in South East Asia. It doesn’t have corruption or red tapism. It is one of the 13 countries to have been granted permission by the European Union under the GSP Plus scheme. Please make use of it to derive more benefits.”

Bilateral trade

CCCCC chairman and Andhra Chamber of Commerce president Baboolal P. Rathore said the bilateral trade exceeded $2.05 billion in 2005.

Exports from India to Sri Lanka in 2004 amounted to $1,350 million, while exports from Sri Lanka to India were over $382 million.

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