India, SL to begin talks on ETCA pact to boost trade ties

India and Sri Lanka will start negotiations to finalise the Economic and Technology Co-operation Agreement (ETCA) later this month, a Sri Lankan Minister said here today.
Speaking at an industry event, Sri Lanka's Minister of Development Strategies and International Trade, Malik Samarawickrama, said the bilateral relationship has deepened considerably since Sri Lankan President Maithripala Sirisena took over in 2015.
The ECTA is expected to help Sri Lanka gain better access to India's rapidly growing market. The Minister said India is Sri Lanka's largest trading partner and the fifth-largest source of Foreign Direct Investment.
The Minister added that Sri Lanka is also negotiating a similar trade agreement with China, its second-largest trade partner.

The pact would provide an opportunity for Indian investors to set up base in Sri Lanka and export to China with preferential access to that country's market. Sri Lanka is also looking at signing trade agreements with Singapore, Pakistan, South Korea and Japan.
The Minister further said that building infrastructure will continue to be a major focus area for the Sri Lankan government. The government of the island nation is working on creating a single electronic window for customs clearance, he added.

The Sri Lankan government has reviewed 142 potential projects valued at over USD 40 billion that can be implemented over the next 15 years in Sri Lanka, Samarawickrama said.

These include projects such as highways, roadways, housing, ports, transport, pharmaceuticals, real estate, IT and IT-enabled services, logistics and manufacturing in industrial zones.
The Minister emphasised that the focus will be on the private sector and only a few projects would take the form of a public-private-partnership (PPP) model. He added that Sri Lanka would be ready to assist in the provision of land for setting up major investment projects.
The Minister noted that India can play a big role through infrastructure development and also by creating jobs in the services sector in the island nation. Potential Indian investors would benefit from Sri Lanka's resilient economy, educated workforce, and preferential access to large markets and rapid growth in sectors like infrastructure.

The Minister said that Sri Lanka would welcome Indian investors who are looking at joint ventures with MSMEs and the country would benefit greatly from the transfer of know-how and technology from India. Investment in MSMEs could also help reduce skill deficit, especially through education and vocational training.
Sri Lanka is keen on cooperating with educational institutes to set up overseas centres in that country and collaborate through research and academic exchanges too.