India takes stock of trade potential in Sri Lanka
The Morning: Sri Lanka can benefit from trading with India given its ever growing market size, enhance SLR-INR trade settlements and attract investments into key sectors with export potential, a press release on the president’s diplomatic visit released on Monday (16) said.
“While acknowledging that there is immense potential for further expanding the trade ties, underscoring the pace of economic growth and opportunities in India as well as the growing market size and its potential for enhancing trade and investment for Sri Lanka, both leaders agreed that it is now opportune to further enhance the trade partnership,” the statement said.
During the discussions held between Sri Lankan President Anura Kumara Dissanayake and the Indian Premier Narendra Modi, the two leaders broached the subject of Sri Lanka and India’s mutual benefits of trade relations under the India-Sri Lanka Free Trade Agreement (ISFTA).
Towards this goal, the key points raised were the need to continue discussions on the Economic and Technological Cooperation Agreement, enhancing INR-LKR trade settlements between the two countries, and the encouragement of investments in key sectors in Sri Lanka with export potential.
OSL take:
Sri Lanka’s overall economic expansion and the expanding trade ties with other countries have presented many business/investment opportunities in the country’s trade sector. Both Sri Lanka and India enjoy strong bilateral ties that have been further enhanced by an operational free trade agreement (FTA). The two countries are engaged in a discussion to further expand these trade ties through the proposed ETCA. However, Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country with many foreign countries have helped boost the country’s trade sector while ensuring the steady growth of the sector. The growth in the trade sector is expected to see further growth given that Sri Lanka is working towards becoming a hub in the South Asian region. All these developments are indicative of the increasing business potential in Sri Lanka’s trade sector and their lucrative nature. The growth and profits recorded by Indian businesses operating in Sri Lanka could also serve as confidence boosters for other India businesses/investors to explore business/investment opportunities in Sri Lanka, especially in the trade sector, while also looking at forming local collaborations for expansion. Other foreign businesses/investors interested in doing business with India could also look at setting up bases in Sri Lanka to engage with India using the preferential treatment enjoyed by Sri Lanka with India.
| Article Code : | VBS/AT/20241218/Z_5 |