should be reciprocity between India and Sri Lanka in their approach and at the
same time understanding the need for differential treatment for the free trade
agreement to be successful, former Sri Lankan Central Governor Indrajit
Commaraswamy said while addressing a webinar last week according to sri lankan
Sri Lankan policymakers to take advantage
of the size of the Indian market
positive list, the negative list, and the transition periods for liberalisation
in the agreement showed that India understood this principle. He called on Sri
Lankan policymakers to take advantage of the size of the Indian market while
speaking at a joint Takshashila Institution and Pathfinder Foundation webinar
on October 9.
is like an unsinkable aircraft carrier parked 20 miles off the coast of India.
You can see India’s neighbourhood policy gain traction on the ground. It is in
India’s strategic interests to have stability on its southern border given the
sensitivities in the Northern border and that a lot of the strategic assets are
in the South.
Sri Lanka has a trade deficit of 3.1
billion US Dollars in favour of India
has a trade deficit of 3.1 billion US Dollars in favour of India. However only
5 per cent of India’s Exports to Sri Lanka only comes on a concessional basis
due to the Free Trade Agreement. Sri Lankan exports to India under the FTA
accounted for 490 million US dollars while total exports of India accounted for
763 million US Dollars. .
said if ‘make in India’ succeeds then it will be an opportunity for Sri Lankan
firms to plug into these supply chains. India and Maldives have increased
relations following the recent election in the Maldives. Grid connectivity
between the two countries is a possibility.
At the 2015 to 2019 period, India 3rd
most significant source of FDI
“If you look at the 2015 to 2019 period, India was Sri Lanka’s largest trading
partner, it was the 3rd most significant source of FDI, and it was the largest
source of tourists. India has been a source of concessional assistance and
India was the first country to assist the
island nation during the pandemic
Bank of India has provided 1.8 billion US dollars mainly for railway
development. The grants assistance has gone to the rehabilitation of
conflict-affected areas.” A US $15 million grant was recently given following
the talks between Prime Minister Modi and Prime Minister Mahinda Rajapaksa.
India was the first country to assist the island nation during the pandemic.
India provided the major financial support for the all-island ambulance