Indo-Lanka trade to reach $10 bn by 2016
Indunil Hewage
Indo-Sri Lanka bi-lateral trade was expected to double to the $10
billion mark by 2016. In 2012, the total trade between India and Sri
Lanka reached close to the $ 5 billion mark, said Saman Kelegama,
Executive Director, Institute of Policy Studies.
Ashok K Kantha , High Commissioner of India handing over the
handbook, India-Sri Lanka Free Trade Agreement to Ministry
of Industry and Commerce Rishad Bathiudeen. Picture by
Sumanachandra Ariyawansa |
He expressed these views at the launch of the handbook on India- Sri
Lanka Free Trade Agreement, held in Taj Samudra Hotel, Colombo.
Highlighting the outcome of the free trade agreement between Sri Lanka
and India over the last 10 years, Dr. Kelegama said that 70 % of Sri
Lanka's exports to India was sent under the FTA and only 30% of Indian
exports were channeled to Sri Lanka through FTA. “Even if you look at
the import export ratio, it was 10 to 1 when the free trade agreement
was signed. And currently, it has reduced to 6 to 1,”Kelegama said.
The India-Sri Lanka bi-lateral Free Trade Agreement was signed in
1998, and the agreement has resulted in substantial growth in trade
between the two countries. The asymmetry between the two countries was
accommodated by having special and differential treatment in favour of
Sri Lanka,” Kelegama said.
In 2000, Sri Lankan exports to India amounted to $ 98 million while
imports amounted to $ 600 million. In 2011, exports had increased to $
519 million and imports to $ 4.4 billion partly due to an increase in
petroleum imports, which were outside the FTA.
In 1999, India and Sri Lanka were trading 505 different items and
over 1,000 items in 2005 and over 2,000 items by 2011.
“So if the free trade agreement was not there some of these
additional products may not have gone to the Indian market,” Kelegama
said.
India is the largest trading partner in Sri Lanka from both the
exports and imports side, while India has become the largest source of
imports to Sri Lanka. |