'India, Sri Lanka likely to finalise CEPA this year'

Bangalore, Jan 2: Taking the close bilateral relations a step further in the post-Free Trade Agreement era, Sri Lanka and India are likely to finalise the Comprehensive Economic Partnership Agreement (CEPA) later this year, Sri Lankan Deputy High Commissioner P M Amza said today.

Speaking at an interactive meeting with entrepreneurs from the State at the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) here, he said the two Governments were actively deliberating upon the agreement, which was to have been finalised last year. It was likely to be signed within the next six months.

He called upon the Indian Industry to take advantage of the General Scheme of Preference (GSP) the Sri Lankan Government had signed with the European Union (EU), which enabled exporters from the Emerald Isles to export 7,200 products duty-free to the EU countries. This was a great opportunity for Indian investors to access markets in the EU through Sri Lanka, he said.

Mr Amza said bilateral trade between the two countries had progressed to 1.4 billion US Dollars during the first half of 2006.

The trade balance favoured India, but it was understandable considering the vastness of this country.

On inviting Indian investors to build and operate mini hydro power plants in the island nation, he said it could be considered if it was mutually beneficial.

He said that in a bid to take attract investments to tier-II and III cities in Sri Lanka, a host of concessions was being offered to investors setting up units outside the Greater Colombo area.

FKCCI President R C Purohit said that after signing FTA in 2000, India had emerged as the largest source of Sri Lankan imports and the third largest export destination for Sri Lankan products. Now that SAFTA was being implemented, bilateral trade was bound to increase exponentially due to factors like close proximity, similar cultures, long and strong trade relationships, he added.

UNI