CEPA: Govt in consultation with stakeholders

Parliamentary Corrs

The Government has initiated a wide consultation process with the stakeholders on Comprehensive Economic Partnership Agreement (CEPA) with India and the decisions on CEPA will be made after consultations and negotiations are concluded, said Industry and Commerce Minister Rishad Bathiyutheen in Parliament yesterday.

Minister Bathiyutheen

He noted that negotiations with India on CEPA are conducted at Commerce Secretary level while technical level discussions are conducted at Director General level. Representatives from all relevant agencies are included in the negotiating team, he said.

Sri Lankan and Indian Governments had agreed to negotiate the CEPA to further enhance the economic relations between the two countries. The CEPA encompasses trading in goods, services and investments. The existing Indo-Sri Lanka Free Trade Agreement (ISFTA) will become the Goods Chapter of the CEPA with further improvements, the Minister said.

The Indo-Sri Lanka FTA was signed on December 28,1998 and entered into force on March 1, 2000.

The Minister said that the Ministry is working to increase exports to India under ISFTA while attempting to reduce the imports.

The balance of trade which was US $ 2,588 million in Indian favour in 2008 has improved to US $ 1,385 million in Indian favour in 2009.

The Minister was responding to a question raised by UNP MP Ravi Karunanayake.