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We have had close links with India, our nearest neighbour, for centuries. These links are manifold - social, religious and economic. With India becoming a global economic powerhouse, Sri Lanka stands to benefit immensely from closer trade links with the giant neighbour.

We have already made vast strides in this direction, with the implementation of the Indo-Lanka Free Trade Agreement. The recent 'Made in India' show also demonstrated the potential of increased Indo-Lanka trade and investment links - business inquiries for over US$ 110 million have been generated during the five days. Several major Indian companies have also pledged to invest in multi-million dollar projects here.

There are many advantages of doing business with India. Shipping and travel costs between the two countries are low. India manufactures many products to Western standards at much lower prices - cars, tractors, televisions and industrial/agricultural equipment to name a few. Importing these products from India costs a lot less and saves foreign exchange. Trade, of course, is a two-way process. We can export many products to India under concessionary or zero duty. Our industries must be geared to meet this challenge. Sri Lankan businesses can also take a leaf out of the Indians' book and organise a 'Made in Sri Lanka' show in India.

India has not stopped at signing the Free Trade Agreement and holding 'Made In India' exhibitions. The US$ 100 million Indian Credit Line, most of which is still to be utilised, is another gesture on the part of India to assist industrial development in Sri Lanka. Sri Lankan authorities and companies should plan more projects that can usefully utilise these funds.

Sri Lanka should take the maximum advantage of its geographical location vis-a-vis India, in the context of trade among the seven SAARC nations. Sri Lanka, with its strategically located seaport in Colombo, can act as a gateway to India and other South Asian nations.

This will assume added significance when a South Asia Free Trade Agreement is eventually signed.

Sri Lanka should not concentrate only on import/export of goods between the two countries. The services sector is also vital. We need better and if possible, cheaper transport links between the two countries. Thus the proposed ferry service between Colombo and Tuticorin will fulfil a long-felt need. More air links between various cities of the two countries are also welcome, as is a proposal to allow Indian private airlines to operate scheduled services to Colombo.

Tourism is another sector that can benefit from an influx of Indians to Sri Lanka.

Although record numbers of Indians have visited our isle especially after the commencement of the 'visa on arrival' scheme, the local tourism industry has only seen the tip of the iceberg. The Indian outbound travel market is booming, thanks to the rise of an increasingly affluent middle class with money to spare. Why not invite more of them to explore the neighbourhood ?

Both governments are studying a proposal which will do just that, if successfully implemented. The idea of a bridge that links India and Sri Lanka has existed for millennia, but it is only now that serious consideration is being given to it.

It will be a colossal venture, far bigger than anything Sri Lanka has ever built, but the economic and social benefits will finally outweigh the financial commitment in the long term.

The world is rapidly becoming globalised. Both India and Sri Lanka, being developing countries, should strive to strengthen mutual trade links in order to raise their economic profile on the global stage.

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