Indo-Sri Lanka FTA (ISFTA)
• Detailed Information - from the official website of The Board of Investment of Sri Lanka (BOI)
• More info from the official website of Department of Commerce (See under Information/Trade Agreements)
Pakistan-Sri Lanka FTA (PSFTA)
• Detailed Information - from the official website of The Board of Investment of Sri Lanka (BOI)
• More info from the official website of Department of Commerce (See under Information/Trade Agreements)
South Asian Free Trade Area (SAFTA)
• Detailed Information - from the official website of The Board of Investment of Sri Lanka (BOI)
• More info from the official website of Department of Commerce (See under Information/Trade Agreements)
Asia– Pacific Trade Agreement (APTA) - Formerly the Bangkok Agreement
• Detailed Information - from the official website of The Board of Investment of Sri Lanka (BOI)
• More info from the official website of Department of Commerce (See under Information/Trade Agreements)
Showing posts with label ISFTA. Show all posts
Showing posts with label ISFTA. Show all posts
12 February 2012
10 January 2012
Indo Lanka Trade Up by 72pct. Free Trade Agreement (FTA) Covers only 30pct of the Trade
10th January 2012, www.dailymirror.lk, By Kelum Bandara
The volume of bilateral trade between Sri Lanka and India during the first eleven months of last year had reached US$4.46 billion, an increase of 71.94 per cent when compared with the corresponding period of the previous year, an official said yesterday quoting Sri Lanka Customs data.But of this India’s exports to Sri Lanka amounted to US$3.97 billion. During this period, Sri Lanka’s exports had grown by 15 per cent while India’s exports had grown by 85 per cent.
He said 70 per cent of trade between the two countries took place outside the Free Trade Agreement (FTA).
“This means that this percentage takes place outside the duty-free tariff regime. Sri Lanka imports numerous items from India because it is competitive,” the official said.Meanwhile, Commerce and Industries Minister Rishad Bathiudeen will attend the Partnership Summit in Hyderabad from January 11 to 13. On the sidelines of the summit, the minister is expected to interact with his Indian counterpart and hold bilateral talks trade between the two countries.
Indo-Lanka talks continue to be held from time to time on the Comprehensive Economic Partnership Agreement (CEPA) which is still to be signed.
Related Info :
• Indo-Sri Lanka FTA (ISFTA) - Detailed Information - The Board of Investment of Sri Lanka (BOI)
• Sri Lanka to Renegotiate CEPA, Comprehensive Economic Partnership Agreement with India
24 October 2010
APTA May Offer Sri Lanka Concessions with a Supportive India
24th October 2010, www.thesundayleader.lk
The three giants in the Asia Pacific Trade Agreement (APTA), namely Korea, India and China are prepared to recognize Sri Lanka (SL) as a Least Developed Country (LDC) and give it a near zero (90%) duty concessionary entry into their
markets on an average under certain tariff lines, a Commerce Department (CD) official said.
CD Director General Gomi Senadheera speaking at a seminar on Trade Agreements (TAs) on Monday said that currently the duty concession is around 20%.
However reaching a consensus under the 4th round of APTA talks which would make these concessions a reality has been delayed due to disagreements by India, but those disagreements are not with SL, he said.
SL exported about US$ 50 million worth of goods to APTA (formerly Bangkok Agreement) member countries last year. China topped the list with US$ 29 million, followed by India (US$ 13 million) and Korea (US$ six million).
Coir products were the island’s biggest export with US$ 24.5 million followed by natural rubber (US$ 14.5 million). Other exports under APTA included rubber products, fish “products,” floor tiles and tea.
APTA is the biggest trade agreement after the Indo-Lanka Free Trade Agreement (ILFTA), said Senadheera.
The objective of APTA is to cover at least 40% of tariff lines.
But studies have shown that Sri Lanka has under-utilised APTA concessions by 50%, he said.
CD plans to educate exporters about APTA.
Senadheera’s talk however didn’t cover the EU and US markets, SL’s number 1 and number 2 export destinations respectively.
Exports to the EU have been hit due to the withdrawal of the GSP + concession, while certain exports to the USA are under threat because of the labour GSP issue.
“There are a large number of exports made to the USA which could enjoy the GSP duty free concession, resulting in the saving of millions of dollars in duties,” said Senadheera. This ignorance is either on the part of the exporter, or of the importer, he said.
A number of these concessions are tied to the rules of origin criterion, ie the requirement of a minimum local value addition. For instance under APTA, the local value addition should be a minimum of 45%.
Senadhira said that GSP are non-reciprocal concessions/TAs. Other TAs touched upon by Senadhira in his speech were the ILFTA, Sri Lanka-Pakistan FTA (smoked rubber sheets topped the list last year with US$ 10 million worth of exports under this agreement), South Asian Preferential Trade Arrangement (under which arrangement SL made US$ 1.77 million worth of exports last year) and South Asian FTA (some US$ 608,624 worth of exports to India and Pakistan last year, including US$ 579,420 worth of ekel broom sticks to Pakistan). The seminar was organized by the Spices and Allied Products,’ Producers’ and Traders’ Association. (See also page 37)
Ravi Ratnayake, Director, Economic and Social Commission for Asia and the Pacific, Trade and Investment Division says intra-regional trade can play a large role in reducing poverty, but barriers to trade among the region’s developing countries remain relatively high. “By simply eliminating all tariffs among each other, the region can reduce the number of people living on less than $1 a day by 43 million.” (Source: ESCAP)
The three giants in the Asia Pacific Trade Agreement (APTA), namely Korea, India and China are prepared to recognize Sri Lanka (SL) as a Least Developed Country (LDC) and give it a near zero (90%) duty concessionary entry into their markets on an average under certain tariff lines, a Commerce Department (CD) official said.
CD Director General Gomi Senadheera speaking at a seminar on Trade Agreements (TAs) on Monday said that currently the duty concession is around 20%.
Related Info:
Sri Lankan Exporters Should Make Use of Free Trade Deals
The three giants in the Asia Pacific Trade Agreement (APTA), namely Korea, India and China are prepared to recognize Sri Lanka (SL) as a Least Developed Country (LDC) and give it a near zero (90%) duty concessionary entry into their
markets on an average under certain tariff lines, a Commerce Department (CD) official said.CD Director General Gomi Senadheera speaking at a seminar on Trade Agreements (TAs) on Monday said that currently the duty concession is around 20%.
However reaching a consensus under the 4th round of APTA talks which would make these concessions a reality has been delayed due to disagreements by India, but those disagreements are not with SL, he said.
SL exported about US$ 50 million worth of goods to APTA (formerly Bangkok Agreement) member countries last year. China topped the list with US$ 29 million, followed by India (US$ 13 million) and Korea (US$ six million).
Coir products were the island’s biggest export with US$ 24.5 million followed by natural rubber (US$ 14.5 million). Other exports under APTA included rubber products, fish “products,” floor tiles and tea.
APTA is the biggest trade agreement after the Indo-Lanka Free Trade Agreement (ILFTA), said Senadheera.
The objective of APTA is to cover at least 40% of tariff lines.
But studies have shown that Sri Lanka has under-utilised APTA concessions by 50%, he said.
CD plans to educate exporters about APTA.
Senadheera’s talk however didn’t cover the EU and US markets, SL’s number 1 and number 2 export destinations respectively.
Exports to the EU have been hit due to the withdrawal of the GSP + concession, while certain exports to the USA are under threat because of the labour GSP issue.
“There are a large number of exports made to the USA which could enjoy the GSP duty free concession, resulting in the saving of millions of dollars in duties,” said Senadheera. This ignorance is either on the part of the exporter, or of the importer, he said.
A number of these concessions are tied to the rules of origin criterion, ie the requirement of a minimum local value addition. For instance under APTA, the local value addition should be a minimum of 45%.
Senadhira said that GSP are non-reciprocal concessions/TAs. Other TAs touched upon by Senadhira in his speech were the ILFTA, Sri Lanka-Pakistan FTA (smoked rubber sheets topped the list last year with US$ 10 million worth of exports under this agreement), South Asian Preferential Trade Arrangement (under which arrangement SL made US$ 1.77 million worth of exports last year) and South Asian FTA (some US$ 608,624 worth of exports to India and Pakistan last year, including US$ 579,420 worth of ekel broom sticks to Pakistan). The seminar was organized by the Spices and Allied Products,’ Producers’ and Traders’ Association. (See also page 37)
Ravi Ratnayake, Director, Economic and Social Commission for Asia and the Pacific, Trade and Investment Division says intra-regional trade can play a large role in reducing poverty, but barriers to trade among the region’s developing countries remain relatively high. “By simply eliminating all tariffs among each other, the region can reduce the number of people living on less than $1 a day by 43 million.” (Source: ESCAP)
The three giants in the Asia Pacific Trade Agreement (APTA), namely Korea, India and China are prepared to recognize Sri Lanka (SL) as a Least Developed Country (LDC) and give it a near zero (90%) duty concessionary entry into their markets on an average under certain tariff lines, a Commerce Department (CD) official said.
CD Director General Gomi Senadheera speaking at a seminar on Trade Agreements (TAs) on Monday said that currently the duty concession is around 20%.
Related Info:
Sri Lankan Exporters Should Make Use of Free Trade Deals
02 October 2010
Local Currency for India-Sri Lanka Trade Mooted
01st October 2010, www.lankabusinessonline.com
Using local currencies to trade between India and Sri Lanka could reduce transactio
n costs and speed up cargo movements, an expert has suggested.
Somi Hazari, former president of the India-ASEAN-Sri Lanka Chamber of Commerce & Industry, said delays in clearing cargo could have serious repercussions for traders.
Indo-Lanka trade continues to be in US dollars which is one of the reasons for high transaction cost, he told a seminar on trade facilitation issues related to the India – Sri Lanka free trade deal.
It was organized by Institute of Policy Studies of Sri Lanka and UNDP Asia-Pacific Regional Centre, Bangkok.
Hazari said exporters and importers have to channel their transactions in US dollars through correspondent banks in New York.
This adds to the cost of trade for companies in both India and Sri Lanka..
He suggested the two central banks of both countries work together on a basket of currencies made up of Sri Lankan and Indian rupees.
"This could lead to win-win situation for both sides and bring down transaction cost and the time taken."
Under British rule the Indian rupee, then specie based - was widely used in the Middle East and even Africa. Sri Lanka's own rupee was pegged to the Indian rupee through a currency board.
Even after the creation of the Reserve Bank of India as a private corporation the rupee held its value.
But after independence the rupee lost its value as the monetary system was mis-used to finance deficit budgets after it became a state-run entity. Middle Eastern countries swiftly dumped the Indian rupee and formed their own national currencies.
The Indian rupee started gaining strength after 1991 when a balance of payment crisis changed the country's monetary policy.
The finance ministry secretary stopped participating in the monetary policy meetings and obligatory deficit financing through printing money ended.
"RBI had become like a cookie jar, where the government, as and when they wanted, could just dip into the cookie jar and take what they wanted," Narendra Jadhav, then principal advisor and chief cconomist of the Reserve Bank of India, told a seminar in Colombo in 2006.
"But in 1993, there was a contract signed between RBI and the Ministry of Finance, which paved the way for the elimination of this automatic monetization.
"Over a 4 year period we eliminated the automatic monetization of the deficit."
Related Info :
• Indo-Sri Lanka FTA (ISFTA) - Detailed Information - The Board of Investment of Sri Lanka (BOI)
Using local currencies to trade between India and Sri Lanka could reduce transactio
n costs and speed up cargo movements, an expert has suggested.Somi Hazari, former president of the India-ASEAN-Sri Lanka Chamber of Commerce & Industry, said delays in clearing cargo could have serious repercussions for traders.
Indo-Lanka trade continues to be in US dollars which is one of the reasons for high transaction cost, he told a seminar on trade facilitation issues related to the India – Sri Lanka free trade deal.
It was organized by Institute of Policy Studies of Sri Lanka and UNDP Asia-Pacific Regional Centre, Bangkok.
Hazari said exporters and importers have to channel their transactions in US dollars through correspondent banks in New York.
This adds to the cost of trade for companies in both India and Sri Lanka..
He suggested the two central banks of both countries work together on a basket of currencies made up of Sri Lankan and Indian rupees.
"This could lead to win-win situation for both sides and bring down transaction cost and the time taken."
Under British rule the Indian rupee, then specie based - was widely used in the Middle East and even Africa. Sri Lanka's own rupee was pegged to the Indian rupee through a currency board.
Even after the creation of the Reserve Bank of India as a private corporation the rupee held its value.
But after independence the rupee lost its value as the monetary system was mis-used to finance deficit budgets after it became a state-run entity. Middle Eastern countries swiftly dumped the Indian rupee and formed their own national currencies.
The Indian rupee started gaining strength after 1991 when a balance of payment crisis changed the country's monetary policy.
The finance ministry secretary stopped participating in the monetary policy meetings and obligatory deficit financing through printing money ended.
"RBI had become like a cookie jar, where the government, as and when they wanted, could just dip into the cookie jar and take what they wanted," Narendra Jadhav, then principal advisor and chief cconomist of the Reserve Bank of India, told a seminar in Colombo in 2006.
"But in 1993, there was a contract signed between RBI and the Ministry of Finance, which paved the way for the elimination of this automatic monetization.
"Over a 4 year period we eliminated the automatic monetization of the deficit."
Related Info :
• Indo-Sri Lanka FTA (ISFTA) - Detailed Information - The Board of Investment of Sri Lanka (BOI)
25 September 2010
Sri Lanka Exports to India increased by 45pct to an All Time High Record
24th September 2010, www.news.lk
Sri Lanka’s exports to India have increased by 45 % during the first seven months of this year, Indi
an High Commissioner Ashok K. Kantha said revealed at a luncheon meeting with local media heads, the Indian High Commissioner has also said that there has been a significant increase in trade between the two countries following implementation of Free Trade Agreement between the two countries.
According to reports Sri Lanka’s exports to India have increased by 45% during the first seven months and India’s exports to Sri Lanka have also increased by 41%. If the current trend continues, 2010 will be an all time high record in trade relations between the two countries.
Related Info:
• Sri Lanka Exports to India up 10 fold as Indo-Lanka Free Trade Agreement Marks 10 Yrs
• Indo-Sri Lanka FTA - Detailed Information - The Board of Investment of Sri Lanka (BOI)
Sri Lanka’s exports to India have increased by 45 % during the first seven months of this year, Indi
an High Commissioner Ashok K. Kantha said revealed at a luncheon meeting with local media heads, the Indian High Commissioner has also said that there has been a significant increase in trade between the two countries following implementation of Free Trade Agreement between the two countries.According to reports Sri Lanka’s exports to India have increased by 45% during the first seven months and India’s exports to Sri Lanka have also increased by 41%. If the current trend continues, 2010 will be an all time high record in trade relations between the two countries.
Related Info:
• Sri Lanka Exports to India up 10 fold as Indo-Lanka Free Trade Agreement Marks 10 Yrs
• Indo-Sri Lanka FTA - Detailed Information - The Board of Investment of Sri Lanka (BOI)
26 May 2010
Sri Lanka Tea, Apparel Exports to India Rise after Removal of FTP Controls
25th May 2010, www.lankabusinessonline.com
Sri Lanka's exports of tea and apparel to India rose sharply in 2009 as impediments in a free trade deal between the two neighbours were removed, an Indian diplomat said.
Overall trade between the two countries is also recovering from recession in the first part of this year, said Vikram Misri, Indian deputy high commissioner in Colombo.
Tea and apparel, the island's main agricultural and industrial exports, had faced quota restrictions under the Indo-Lanka free trade agreement signed a decade ago which raised doubts about the trade deal among the island's business community.
"With regard to the quotas, they have been liberalized consistently in a way that Sri Lanka is allowed to self-administer them and they seem to have begun to have a positive impact as can be seen in a 136 percent growth in the export of tea and about 35 percent increase in the export of garments in 2009, both items where quotas exist," said Misri.
"This is happening in a year when there has been an overall decline of 21.53 percent in Sri Lankan exports to India."
With regard to other restrictions, Misri told a seminar on the FTA that there are no Sri Lanka-specific port entry restrictions in India.
Also, a condition of import of fabrics to use the garment quota has been done away with.
"India has also expressed its readiness to implement the “garment model” for the administration of the pepper quota, which is expected to be signed shortly," Misri said.
"Most of the implementation issues that have created this so-called “perception” about the FTA have been resolved and others pertaining to NTBs can be resolved if there is will on the Sri Lankan side to move forward with already negotiated frameworks."
Bilaterally, the FTA has led to the emergence of a "vibrant" economic relationship and a "quantum jump" in trade, investment and economic cooperation between India and Sri Lanka, Misri said.
"Within two years of its coming into force, we saw a doubling of our trade turnover. In another three years, that is, by 2005, we doubled the trade turnover again. Between 2000 and 2008, the turnover grew five times."
The trend would have continued in 2009 if not for the global economic crisis.
"It should be a cause for satisfaction that early figures for 2010 are already showing a strong revival of trade between the two countries, which only goes to validate the path we are embarked upon."
Misri also said that in the past India and Sri Lanka had been more interdependent than they are now even with a modern free trade arrangement.
"Even as recently as 1938, India accounted for 42.5 percent of Sri Lanka’s imports while in 2008, even with an FTA in place, Indian exports to Sri Lanka were only about 20 percent of Sri Lanka’s global imports."
Related Info :
• Indo-Sri Lanka FTA (ISFTA) - Detailed Information - The Board of Investment of Sri Lanka (BOI)
Sri Lanka's exports of tea and apparel to India rose sharply in 2009 as impediments in a free trade deal between the two neighbours were removed, an Indian diplomat said.
Overall trade between the two countries is also recovering from recession in the first part of this year, said Vikram Misri, Indian deputy high commissioner in Colombo.
Tea and apparel, the island's main agricultural and industrial exports, had faced quota restrictions under the Indo-Lanka free trade agreement signed a decade ago which raised doubts about the trade deal among the island's business community.
"With regard to the quotas, they have been liberalized consistently in a way that Sri Lanka is allowed to self-administer them and they seem to have begun to have a positive impact as can be seen in a 136 percent growth in the export of tea and about 35 percent increase in the export of garments in 2009, both items where quotas exist," said Misri.
"This is happening in a year when there has been an overall decline of 21.53 percent in Sri Lankan exports to India."
With regard to other restrictions, Misri told a seminar on the FTA that there are no Sri Lanka-specific port entry restrictions in India.
Also, a condition of import of fabrics to use the garment quota has been done away with.
"India has also expressed its readiness to implement the “garment model” for the administration of the pepper quota, which is expected to be signed shortly," Misri said.
"Most of the implementation issues that have created this so-called “perception” about the FTA have been resolved and others pertaining to NTBs can be resolved if there is will on the Sri Lankan side to move forward with already negotiated frameworks."
Bilaterally, the FTA has led to the emergence of a "vibrant" economic relationship and a "quantum jump" in trade, investment and economic cooperation between India and Sri Lanka, Misri said.
"Within two years of its coming into force, we saw a doubling of our trade turnover. In another three years, that is, by 2005, we doubled the trade turnover again. Between 2000 and 2008, the turnover grew five times."
The trend would have continued in 2009 if not for the global economic crisis.
"It should be a cause for satisfaction that early figures for 2010 are already showing a strong revival of trade between the two countries, which only goes to validate the path we are embarked upon."
Misri also said that in the past India and Sri Lanka had been more interdependent than they are now even with a modern free trade arrangement.
"Even as recently as 1938, India accounted for 42.5 percent of Sri Lanka’s imports while in 2008, even with an FTA in place, Indian exports to Sri Lanka were only about 20 percent of Sri Lanka’s global imports."
Related Info :
• Indo-Sri Lanka FTA (ISFTA) - Detailed Information - The Board of Investment of Sri Lanka (BOI)
25 May 2010
Sri Lanka Exports to India up 10 fold as Indo-Lanka Free Trade Agreement Marks 10 Yrs
25th May 2010, www.dailynews.lk, Sanjeevi Jayasuriya
Sri Lanka’s ove
rall trade with India is growing closer to six fold and exports from Sri Lanka are growing ten fold. The increased diversity with greater value addition in exports from Sri Lanka is a positive development. March 2010 marks ten years since implementation of the Indo-Sri Lanka Free Trade Agreement (ISFTA) and during this period trade between the two countries expanded rapidly.
Though, there have been teething problems and trade disputes it is important to assess the progress of ILFTA analyzing the positive and the negatives and take stock of how the Agreement should progress in the next decade.
Exports from Sri Lanka to India increased significantly recording US $ 58 million in 2000 to US $ 418.3 million in 2008.
Similarly the exports from India to Sri Lanka have also accelerated from US $ 600.1 million to US $ 3,443 million from 2000 to 2008.
The product base of Sri Lanka diversified largely during this time. In 1999 Sri Lanka exported products to India under 505 tariff lines whereas by 2005 the number of products augmented to 1,062 with several value added products.
By 2008, other than the traditional primary products such as pepper, waste and scrap steel, arecanuts, dried fruit and cloves, several value added products such as insulated wires and cables, pneumatic tyres, ceramics, vegetable fats and oils, refined copper products, apparel, pharmaceutical products and furniture were among the top exports from Sri Lanka to India.
Trade relations between Sri Lanka and India gained momentum since 1990 and grew rapidly as a result of the implementation of ILFTA.
India followed a
reform agenda and has progressed much. The “new thinking” in India should be attractive to Sri Lanka. The country needs to take a cue from the statistical input and brilliant decision making process in India, Finance and Planning Deputy Minister Dr Sarath Amunugama said.
“The ILFTA is a restricted agreement as it gives preferences only to Sri Lanka and India. There is a major debate in the US and West on these free trade agreements considering the fact that we live in relatively small world.
The world has changed and we need to change accordingly,” he said.
The country is presented with an ideal situation now. Sri Lanka is ready for a spectacular take off. India and China would be the leading world economies and it will make South Asia a global hot spot.
It is import
ant to develop incredible synergies to exploit the situation, Ceylon Chamber of Commerce Chairman Dr Anura Ekanayake said.
The ILFTA should look at from improving on good and reducing on bad. The agreement could be a platform for much wider relationship as Sri Lanka is high trade dependable.
The agreement should be outward looking and have a major role to play in increasing national investments up to the range of 40 percent which could not mobilize locally, he said.
A two-day conference on the India-Sri Lanka free trade agreement; achievements, challenges and the road ahead jointly organized by the Institute of Policy Studies of Sri Lanka, Centre for WTO Studies, Indo-Lanka Chamber of Commerce and Industry and the India Sri Lanka Joint Business Council was held yesterday.
Image: Finance and Planning Deputy Minister Dr Sarath Amunugama and Ceylon Chamber of Commerce Chairman Dr Anura Ekanayake
Related Info:
• Indo-Sri Lanka Free Trade Agreement is 10 Yrs Old
• Indo-Sri Lanka FTA (ISFTA) - Detailed Information - The Board of Investment of Sri Lanka (BOI)
Sri Lanka’s ove
rall trade with India is growing closer to six fold and exports from Sri Lanka are growing ten fold. The increased diversity with greater value addition in exports from Sri Lanka is a positive development. March 2010 marks ten years since implementation of the Indo-Sri Lanka Free Trade Agreement (ISFTA) and during this period trade between the two countries expanded rapidly.Though, there have been teething problems and trade disputes it is important to assess the progress of ILFTA analyzing the positive and the negatives and take stock of how the Agreement should progress in the next decade.
Exports from Sri Lanka to India increased significantly recording US $ 58 million in 2000 to US $ 418.3 million in 2008.
Similarly the exports from India to Sri Lanka have also accelerated from US $ 600.1 million to US $ 3,443 million from 2000 to 2008.
The product base of Sri Lanka diversified largely during this time. In 1999 Sri Lanka exported products to India under 505 tariff lines whereas by 2005 the number of products augmented to 1,062 with several value added products.
By 2008, other than the traditional primary products such as pepper, waste and scrap steel, arecanuts, dried fruit and cloves, several value added products such as insulated wires and cables, pneumatic tyres, ceramics, vegetable fats and oils, refined copper products, apparel, pharmaceutical products and furniture were among the top exports from Sri Lanka to India.
Trade relations between Sri Lanka and India gained momentum since 1990 and grew rapidly as a result of the implementation of ILFTA.
India followed a
reform agenda and has progressed much. The “new thinking” in India should be attractive to Sri Lanka. The country needs to take a cue from the statistical input and brilliant decision making process in India, Finance and Planning Deputy Minister Dr Sarath Amunugama said.“The ILFTA is a restricted agreement as it gives preferences only to Sri Lanka and India. There is a major debate in the US and West on these free trade agreements considering the fact that we live in relatively small world.
The world has changed and we need to change accordingly,” he said.
The country is presented with an ideal situation now. Sri Lanka is ready for a spectacular take off. India and China would be the leading world economies and it will make South Asia a global hot spot.
It is import
ant to develop incredible synergies to exploit the situation, Ceylon Chamber of Commerce Chairman Dr Anura Ekanayake said.The ILFTA should look at from improving on good and reducing on bad. The agreement could be a platform for much wider relationship as Sri Lanka is high trade dependable.
The agreement should be outward looking and have a major role to play in increasing national investments up to the range of 40 percent which could not mobilize locally, he said.
A two-day conference on the India-Sri Lanka free trade agreement; achievements, challenges and the road ahead jointly organized by the Institute of Policy Studies of Sri Lanka, Centre for WTO Studies, Indo-Lanka Chamber of Commerce and Industry and the India Sri Lanka Joint Business Council was held yesterday.
Image: Finance and Planning Deputy Minister Dr Sarath Amunugama and Ceylon Chamber of Commerce Chairman Dr Anura Ekanayake
Related Info:
• Indo-Sri Lanka Free Trade Agreement is 10 Yrs Old
• Indo-Sri Lanka FTA (ISFTA) - Detailed Information - The Board of Investment of Sri Lanka (BOI)
15 March 2010
Indo-Sri Lanka Free Trade Agreement is 10 Yrs Old
15th March 2010, www.island.lk, By Devan Daniel
The Free T
rade Agreement between India and Sri Lanka is 10 years old and a top trade economist says trade between the two South Asian neighbours have improved and that Sri Lanka should consider upgrading the agreement into a comprehensive economic partnership.
"India is emerging as a leading economy in the world and whether or not one likes it Sri Lanka has to be close to India because it would stimulate Sri Lanka’s own economy," Dr. Saman Kelegama, Executive Director of the Institute of Policy Studies, told the Island Financial Review.
"The Free Trade Agreement between the two countries was signed in March 2000 and since then, trade has improved, investments have grown along with professional services between the two countries, despite the fact that the FTA covers only trade in goods," he said.
In 2008, the two countries were on the verge of signing a historic comprehensive economic partnership agreement (CEPA) but by then the word ‘seepa’ (the pronunciation of the accronym CEPA) had become a bad word with some local businesses, professional bodies and political parties and the president was compelled to shelf the agreement.
Dr. Kelegama said the Indo-Lanka Comprehensive Economic Partnership Agreement (ILCEPA) was negotiated with proper checks and balances taking into account some of the difficulties encountered with the FTA.
"The ILCEPA was also going to open up trade in investments and services between the two countries with the proper checks and balances and although the current FTA does not cover these areas, they still have grown," he said.
Dr. Kelegam said that Indian investments in Sri Lanka had grown significantly since the FTA was signed in 2000,.
"Between 1978 and 1995, investments from India accounted to 1.2 percent of total foreign direct investments. In 1998, Indian investments in Sri Lanka amounted to US$ 1.4 million. But, by 2008, investments increased to US$ 125.9 million. This was 14 percent of total foreign direct investments. Today India is the second largest investor in Sri Lanka after Malaysia," he said.
"About 63 percent of these investments have been in the services sector, such as Bharti Airtel, Apollo Hospitals, Lanka Oil Company, Taj Hotels and Jet Airways. By 2007, Indian investments resulted in over 70 projects, employing 6,747 people in Sri Lanka."
About 70 percent of Colombo Port’s income is due to transshipments to and from India while 40 percent of Sri Lankan Airline’s revenue came from the Indian market.
Dr. Kelegama pointed out that several Sri Lankan IT companies had provided solutions to Indian companies. Interblocks sold Internet solutions to Indian banks while Microimage sold Tamil sms solutions to Airtel. Sri Lankan tourism companies Aitken Spence and Jetwing have also ventured into India.
Dr. Kelegama said, however, that most of the investments that came in where related to vanaspathi and copper, with many Indian and other countries investing in Sri Lanka with little job creation.
"There were problems in these areas. This was why the ILCEPA attempted to bring investments and services into the fold of an agreement," he said.
Trade in goods have increased under the FTA. The average annual exports to India between 1995 and 1999 amounted to US$ 39 million. Imports from India amounted to US$ 509 million. In 2008, eight years after the FTA was signed, exports to India reached US$ 418.3 million. Imports amounted to US$ 3,443 million.
Dr, Kelegama again pointed out that vanaspathi and copper made trade seem lopsided in favour of India.
"The FTA has its problems, but ILCEPA was meant to address those issues and deepen the economic ties between the two countries," he said.
Related Info :
• Indo-Sri Lanka FTA (ISFTA) - Detailed Information - The Board of Investment of Sri Lanka (BOI)
The Free T
rade Agreement between India and Sri Lanka is 10 years old and a top trade economist says trade between the two South Asian neighbours have improved and that Sri Lanka should consider upgrading the agreement into a comprehensive economic partnership."India is emerging as a leading economy in the world and whether or not one likes it Sri Lanka has to be close to India because it would stimulate Sri Lanka’s own economy," Dr. Saman Kelegama, Executive Director of the Institute of Policy Studies, told the Island Financial Review.
"The Free Trade Agreement between the two countries was signed in March 2000 and since then, trade has improved, investments have grown along with professional services between the two countries, despite the fact that the FTA covers only trade in goods," he said.
In 2008, the two countries were on the verge of signing a historic comprehensive economic partnership agreement (CEPA) but by then the word ‘seepa’ (the pronunciation of the accronym CEPA) had become a bad word with some local businesses, professional bodies and political parties and the president was compelled to shelf the agreement.
Dr. Kelegama said the Indo-Lanka Comprehensive Economic Partnership Agreement (ILCEPA) was negotiated with proper checks and balances taking into account some of the difficulties encountered with the FTA.
"The ILCEPA was also going to open up trade in investments and services between the two countries with the proper checks and balances and although the current FTA does not cover these areas, they still have grown," he said.
Dr. Kelegam said that Indian investments in Sri Lanka had grown significantly since the FTA was signed in 2000,.
"Between 1978 and 1995, investments from India accounted to 1.2 percent of total foreign direct investments. In 1998, Indian investments in Sri Lanka amounted to US$ 1.4 million. But, by 2008, investments increased to US$ 125.9 million. This was 14 percent of total foreign direct investments. Today India is the second largest investor in Sri Lanka after Malaysia," he said.
"About 63 percent of these investments have been in the services sector, such as Bharti Airtel, Apollo Hospitals, Lanka Oil Company, Taj Hotels and Jet Airways. By 2007, Indian investments resulted in over 70 projects, employing 6,747 people in Sri Lanka."
About 70 percent of Colombo Port’s income is due to transshipments to and from India while 40 percent of Sri Lankan Airline’s revenue came from the Indian market.
Dr. Kelegama pointed out that several Sri Lankan IT companies had provided solutions to Indian companies. Interblocks sold Internet solutions to Indian banks while Microimage sold Tamil sms solutions to Airtel. Sri Lankan tourism companies Aitken Spence and Jetwing have also ventured into India.
Dr. Kelegama said, however, that most of the investments that came in where related to vanaspathi and copper, with many Indian and other countries investing in Sri Lanka with little job creation.
"There were problems in these areas. This was why the ILCEPA attempted to bring investments and services into the fold of an agreement," he said.
Trade in goods have increased under the FTA. The average annual exports to India between 1995 and 1999 amounted to US$ 39 million. Imports from India amounted to US$ 509 million. In 2008, eight years after the FTA was signed, exports to India reached US$ 418.3 million. Imports amounted to US$ 3,443 million.
Dr, Kelegama again pointed out that vanaspathi and copper made trade seem lopsided in favour of India.
"The FTA has its problems, but ILCEPA was meant to address those issues and deepen the economic ties between the two countries," he said.
Related Info :
• Indo-Sri Lanka FTA (ISFTA) - Detailed Information - The Board of Investment of Sri Lanka (BOI)
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