India, a major development credit facilitator:

Indo-Lanka trade growing

Mahinda P.Liyanage- Galle Daily News Correspondent

With the implementation of the Indo-Lanka Free Trade Agreement in March 2000, trade between India and Sri Lanka has rapidly grown making Sri Lanka India's largest trading partner in South Asia. The Indian government has become one of the major development credit facilitators of Sri Lanka, said Southern Province Governor Kumari Balasuriya.

Governor Kumari Balasuriya.

She said so at a reception in Matara, accorded by Indian Consul General in Hambantota R. Ragunathan to celebrate the 64th Republic Day of India. The governor was the chief guest.

"Our two countries enjoy a healthy trade and investment relationship. The bilateral trade has grown rapidly during the last decades," she said.

The presence of many Indian private sector companies has encouragingly raised Indian investment in Sri Lanka, she said.

She added that during the three decade long terrorism period in Sri Lankan, the Indian government recognized the bounden obligation of the Sri Lankan government to launch war against terrorism and rendered its support to the country.

The governor said the Indian Republic Day bore an exceptional significance in particular for Sri Lankans being the closest neighbour sharing a similar heritage.

The relationship between India and Sri Lanka had been eternally fraternal, ardent and mutually rewarding inspired by cultural links since time immemorial, she emphasised.

Indian Consul General Ragunathan said India had regularly been among the top two investors in Sri Lanka and was the largest direct investment source in 2011 with an investment worth US$ 150 million.

The cumulative Indian investment to Sri Lanka since 2003 has crossed US$ 800 million. The Indian government has recently approved a grant for the construction of a handcrafts village in Kavantissapura in Tissamaharamaya, Hambantota district costing Rs 20 million, he said.

Several Indian companies have planned investments in Sri Lanka in the continuing years. Likewise investment by Sri Lankan companies in India too are surging as Sri Lankan businesses take advantage of India's dynamic economy and large market, the Consul General added.

He said India is Sri Lanka's closest neighbour. The relationship between the two countries is over 2,500 years old and both sides have built upon a legacy of intellectual, cultural, religious and linguistic ties. "Buddhism continues to be a common thread binding India and Sri Lanka together," he said. A large number of leading regional political and community leaders, members of the academia and business community participated. A cultural performance was presented by Indian Cultural Center students.