Sri Lanka and India are poised to strengthen their economic and trade partnership through a new Economic and Technology Cooperation Agreement (ETCA) and a Bilateral Investment Treaty, according to Indian High Commissioner to Sri Lanka Shri Santosh Jha. This move comes on the heels of a successful Free Trade Agreement (FTA) established in 2000.
Highlighting India’s role as Sri Lanka’s largest trade partner, foreign investor, and tourism contributor, High Commissioner Jha emphasized the importance of building on this existing foundation. The ETCA aims to remove obstacles to trade, eliminate non-tariff barriers, and streamline trade facilitation processes.
The core objective is to expand Sri Lankan access to the vast Indian market, encompassing both goods and services. Additionally, the agreement seeks to attract further Indian investments, positioning Sri Lanka as a preferred partner due to its close proximity to the rapidly growing Indian economy.
India’s commitment to Sri Lanka’s economic recovery and development is further demonstrated by its efforts to encourage Indian private sector investment in Sri Lanka.
Beyond economic ties, enhanced connectivity is identified as a central pillar of the evolving partnership. This focus encompasses air, maritime, trade, digital, energy, and people-to-people connectivity.
The most ambitious initiative, however, is the India-Sri Lanka Land Connectivity Corridor. This game-changing project, upon completion, has the potential to transform relations, solidify the partnership, and usher in a new era of prosperity for the connected populations.
The collaboration on energy connectivity is another area of ongoing development.
In conclusion, Sri Lanka and India are embarking on a new chapter in their economic and trade relationship. The ETCA, Bilateral Investment Treaty, and focus on enhanced connectivity mark a significant step towards deeper integration and mutual benefit.