CEPA: Only certain areas to be addressed

Charumini DE SILVA in Jaffna

Sri Lanka and India have a strong desire to proceed with the CEPA agreement and only certain areas needs to be addressed, Central Bank Governor Ajith Nivard Cabraal said at the opening of the Indian Bank in Jaffna yesterday.

Continuing the Governor said availability of various modes of travel will develop the choices of the people and will further enhance and strengthen the way businesses operate.

The credit in the area is picking up with accessibility and the strength of the repayments.

The Central Bank has disbursed 21,000 loans in the Northern province and 20,000 in the Eastern province last year.

Indian High Commissioner Ashok K Kantha said both countries have a strong interest to continue the agreement. "We want it to be more comprehensive and upgraded," he added.

He said India and Sri Lanka have a strong relationship. "The setting up of the bank is a timely initiative. Jaffna peninsula and the Northern province is passing through a historical growth and is bouncing back after three decades in a confident manner," he said.

"This is my last visit to Jaffna and I have noticed new dimensions each time I visit. We launched the Jaffna International Trade Fair yesterday and the Indian participation has increased significantly. Economic activities are happening clearly and North can be the economic hub like it used to be," Kantha said.

The High Commissioner said in the years to come Sri Lanka and India will be even accessible by land. India has funded a railway project. Work has commenced already. The ferry services will also create easy access between the two countries. "All these activities will significantly improve India - Sri Lanka business ties and doing business in Sri Lanka will be further improved with more Indian investments coming in," he said.