Positive response from Indian investors - Cabraal

BY CHANNA Kasturisinghe

PRESIDENT Mahinda Rajapakse's visit to India has set the stage for a sizable increase in Indian investment in Sri Lanka and further strengthening of trade ties between the two countries.

Economic Advisor to the President and the Secretary of the Ministry of Plan Implementation Ajith Nivard Cabraal told the Daily News yesterday that the Indian industry leaders who met President Rajapakse expressed their keenness in strengthening business ties with Sri Lanka.

"The President's invitation to the leading commerce and industrial chambers was well received and they were very positive about investing in Sri Lanka," Cabraal, who accompanied the President in his Indian visit said.

He said that it was very likely that a large number of Indian investors would invest in industrial and agriculture sectors in Sri Lanka in the near future as a result of strengthened political and economic ties between the two countries.

"What very fruitful meetings with leading chamber representatives and politicians. I strongly believe that the Indian business community considers that Sri Lanka is a healthy place to invest in," Cabraal said.

President Rajapakse and his delegation met the leading corporate leaders of India at the Hotel Mayura Sheraton, in New Delhi yesterday.

The large delegation of business leaders represented sectors such as rubber and rubber based products, IT and ITES related services, textiles and apparel, electronics and light engineering, agriculture, power and petroleum, infrastructure, tourism and pharmaceutical products.

Although the main focus of the President's meeting with the Indian Prime Minister Manmohan Singh on Wednesday was the North East problem he also held extensive talks on a wide range of issues including enhancing mutual cooperation in the economic field.

President Rajapakse expressed satisfaction at the meeting at Rashtrapati Bhavan on the way the two countries are working on Comprehensive Economic Agreement. The President also met the Commerce Minister Kamal Nath on Wednesday.

Meanwhile, the Indian Cabinet yesterday approved the South Asia Free Trade Area (SAFTA) agreement coming into force of which benefit trade among the countries of the SAARC region.

Indian Prime Minister Manmohan Singh has already assured the neighbouring countries that India would like to offer its vast market to them to fuel to the economic growth in the region.

Economic experts believe that with the SAFTA coming into effect, trade in the SAARC region would to go up considerably in the next two years.