Nalin Welgama says SL must revisit FTA with India after US tariff move

Friday, 4 April 2025 03:19 - - {{hitsCtrl.values.hits}}

Ideal Group Founder and Executive Chairman Nalin Welgama yesterday called for a reassessment of Sri Lanka’s Free Trade Agreement (FTA) with India, highlighting the $ 2.75 billion annual trade deficit between the two neighbouring countries.

His opinion was shared via a LinkedIn post, following the US’ announcement of steep 44% new tariff on Sri Lanka under its reciprocal tariff policy. “It’s important to revisit our FTA with India and seek permission for our products to access the lucrative Indian market on preferential terms,” he noted.

Welgama highlighted the automotive components industry as a key opportunity, pointing out that Tamil Nadu — India’s auto manufacturing hub is Sri Lanka’s immediate neighbour.

“Time to act in view of US reciprocal taxes,” he added.

Welgama’s Ideal Group, a $ 150 million conglomerate, with 20 subsidiaries operates across multiple industries including automotive. He forged a landmark joint venture with India’s leading automaker — Mahindra & Mahindra to assemble and manufacture vehicles in Sri Lanka, under Ideal Motors Ltd.

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