‘India-Sri Lanka ETCA may soon be a reality’

The Dollar Business Bureau 

The India-Sri Lanka Economic and Technology Cooperation Agreement (ETCA), which is an upgrade over the two countries’ existing Free Trade Agreement (FTA), could soon be a reality.

“It is up to Sri Lankans themselves to decide on the contours of any agreement that they sign with a foreign country,” India’s High Commissioner in Colombo Y K Sinha said on the occasion of the 70th Independence Day.

“However, there has to be “genuine debate and discussion” among stakeholders in Sri Lanka,” he said.

Referring to the latest rounds of discussion over the pact in Colombo Sinha hoped that the agreement, once formally inked, would benefit the two neighbours. “It will be a win-win situation for all,” he remarked.

India’s bilateral trade with Sri Lanka stood at $4.6 billion in 2015-16. India’s exports accounted for a large chunk of trade, valued at $4 billion last year.

Sri Lanka was using FTA framework for nearly 60% of its exports. However, Indian exports were using only about 10% of the channel. “It is obvious who has benefitted more from the FTA,” he said.

Sinha underscored according to the latest predictions, India’s economic growth would touch 8 % during the ongoing financial year.