SL urges India to dismantle non-tariff barriers

Kochi, Apr 16: Welcoming India's decision to accept ''asymmetric responsibilities'' in relations with neighbouring countries, Sri Lankan minister for Export Development and International Trade G L Peiris today stressed the need for New Delhi to dismantle ''non-tariff barriers'' in imports.

Inaugurating a two-day workshop and B2B meet between the Kerala and Sri Lankan Chambers of Commerce and Industry here, Mr Peiris said these non-tariff barriers acted as a ''wet blanket'' and dampened the trade relations between the two countries.

''I know these cannot be removed overnight. But a systematic and gradual effort should be made to dismantle the non-tariff barriers such as limited ports of import, customs and certification regulations,'' he added.

Stating that the trade between India and Sri Lanka had burgeoned following the bilateral Free Trade Agreement, which came into effect in 2000, Mr Peiris said the two countries were now negotiating a Comprehensive Economic Partnership Agreement (CEPA), which would cover not only trade in goods but also services.

The Prime Ministers of the two countries had started discussions in June, 2002, regarding the CEPA, which would take the existing economic relations to a higher level. So far, three rounds of trade negotiating committee (TNC) meetings had been held and the draft texts of the main CEPA was under negotiation, H M B Herath, Minister (Commercial), in the Sri Lankan High Commission said.

''The two sides expect to conclude the negotiating process by the middle of this year,'' he added.

Delivering the keynote address, Kerala Home Affairs and Tourism Minister Kodiyeri Balakrishnan suggested a ''Tourism Triangle'' covering Kerala, Sri Lanka and the Maldives.

Stating that these areas could be packaged as a single ''tourism zone'', Mr Balakrishanan said the Kerala and Sri Lankan travel industries could undertake joint-marketing campaigns and also initiate joint ventures.

Stating that Kerala had proposed to start a passenger ship service between Colombo and Vizhinjam port near Thiruvananthapuram, the Minister said this would be beneficial to both sides.

''Talks are on in this regard,'' he added.

Health, fisheries and education were some other areas in which entrepreneurs from the two sides could collaborate, Mr Balakrishnan said. Mr Peiris, describing 'CEPA' as a logical extension of the bilateral free trade agreement, said that following the FTA, the bilateral trade had gone up from 670 million USD in 2000 to two billion USD in 2006.

Indian investments in Sri Lanka had gone up from four million USD in 1999 to 115 million USD in 2006, he said.

Stressing the need for Sri Lanka to talk not only with New Delhi but also have a ''vigorous dialogue'' with other regions, Mr Peiris said south India was of particular importance to Sri Lanka.

Inviting Mr Kodiyeri Balakrishnan to visit Colombo at the earliest, Mr Peiris said the Kerala government could hold a road show in Sri Lanka, highlighting its investment and trade opportunities.

Mr Herath said following the Indo-Sri Lanka FTA, India had emerged as the third largest export market for Sri Lanka. Last year, India accounted for about 7.2 per cent of Sri Lanka's total exports and 18.5 per cent of the imports.

The major Sri Lankan export items were refined copper and copper alloys, vegetable fats and oils, aluminium wires, pepper, rubber articles, waste and scrap paper and articles of stone, plaster, cement and asbestos.

India on the other hand exported kerosene, diesel, lubricants, cotton, motor cycles, boilers and machinery parts, motor cars, medicines, plastics, electrical machinery and copper articles.

Indian investments in Sri Lanka were in the areas of food and beverages, rubber products, cement, marble and granite, computer software, power plants, edible iols, housing, textile and apparel, chemicals, horticulture, tobacco, paper and paper products and printing.

Kerala Chamber of Commerce and Industry (KCCI) president E S Jose said a Memorandum of Understanding will be signed between the KCCI and the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) tomorrow.

President, FCCISL, Nawab Rajabdeen, said Sri Lanka had recently secured an order from India to build two large passenger ships at an estimated cost of about 35 million USD. An Indian business house had also evinced interest in setting up a 500 million USD information park and film city in Sri Lanka, he said.

UNI