Indo-Lanka discussions on FTA and CEPA

Department of Commerce (DC) officials are to meet with their Indian counterparts to discuss shortcomings to the Indo-Lanka Free Trade Agreement (FTA) and Comprehensive Economic Partnership Agreement (CEPA).

Industry and Commerce Secretary Thilak Collure told Weekend FT that the officials would revisit some of the concerns expressed in both these economic partnerships and consider ways to increase trade between the two countries. Tagged a “routine” event, they are continuing meetings to iron out several concerns that the Sri Lankan business community have expressed over two documents.    

“I understand that the Indian officials will meet with the Department of Commerce to discuss ways of streamlining the FTA along with a revisit of the CEPA,” he explained, but insisted that there were no plans to release the latter document to the public as had been requested by several prominent businessmen to analyse the implications for Lankan business. The meeting would take place soon, Collure maintained – possibly later this month or early December.

Industry and Commerce Minister Rishad Badiudeen had also pledged to appoint a committee with private sector officials to sound them out on the reservations expressed in CEPA, but this measure is yet to become reality.

Several prominent businessmen including Laugfs Gas Chairman W.K.H Wegapitiya have been vociferous in their critique of CEPA, insisting that it would create a tilted playing field for local business. They insist that CEPA would open up the economy too fast, too soon and advocate revamping of the FTA to improve trade.

Recognising and amending the provisions of the Indo-Lanka FTA, which is over a year old is still continuing and the latest meeting between the commerce officials of the two countries is another step in this venture.