COLOMBO: India assured to address Sri Lanka’s concerns about the massive imbalance in bilateral trade and introduce measures to reach a balanced growth in trade.
Addressing a business meeting hosted by the Ceylon Chambers of Commerce in Colombo, India’s Prime Minister Narendra Modi, who is on a two-day state visit to the island, said India will try to make it easier for Sri Lanka to access Indian markets.
Last year the bilateral trade between India and Sri Lanka stood at US$ 5.2 billion. The balance of trade always remained heavily in favor of India with exports from Sri Lanka were at only US$ 600 million while total imports from India were at US$ 4.6 billion.
“I know there are concerns here about the huge trade imbalance. I am prepared to work with you to address them. I want balanced growth in trade. We will try to make it easier and smoother for you to access the Indian market,” Mr. Modi said.
Mr. Modi noted that the Customs Cooperation agreement signed is a step in that direction.
The agreement signed today between Sri Lanka and India on cooperation and mutual assistance in Custom matters is expected to simplify trade and reduce non-tariff barriers on both sides.
The Indian Prime Minister suggested that the two countries should move to conclude a Comprehensive Economic Partnership Agreement that was under consideration for years.
“We should ensure that Sri Lanka does not fall behind in the changing and competitive world. That is why India and Sri Lanka should move boldly to conclude a Comprehensive Economic Partnership Agreement.,” Mr. Modi said. He said Sri Lanka should also attract investments from India for exports to India and Indian investments can also upgrade and expand Sri Lanka’s infrastructure.
