Lanka sees end to trade bias

Sri Lanka is hopeful that whatever trade asymmetries remain, even after the adoption of the Indo-Sri Lanka free trade agreement (FTA), will be sorted out while finalising the comprehensive economic partnership agreement (CEPA) with India by the end of this year. This is according to a high-ranking Sri Lankan official.

Speaking at a session organised by the Federation of Indian Chambers of Commerce and Industry (Ficci), K J Weerasinghe, Sri Lanka's director-general of commerce, said the negotiations leading up to the proposed CEPA would remove the concerns of his country's exporters. Weerasinghe is leading a 13-member delegation to India.

Weerasinghe said although the FTA had led to the expansion of areas of export (with India moving from its position as the 16th largest buyer of Sri Lanka's products in 1998 to the third largest importer), Sri Lanka's exports to India were still limited to a few items.

He said Colombo had set up working groups with a negotiating mandate to look into the issues including trade in services. On services, Sri Lanka's strategy for liberalisation would focus on the asymmetries, progressive liberalisation and sequence of the liberalisation process, Weerasinghe said.

India and Sri Lanka signed the FTA in December 1998. The agreement provides duty-free market access to both the countries on a preferential basis. India has also agreed to permit limited quantities of imports of tea and garments from Sri Lanka. The tea quota will be 15 million kg per annum and garments, 8 million pieces.