Lankan Ranger
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- Aug 9, 2009
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Sri Lanka to Revive Comprehensive Economic Partnership Agreement with India
Sri Lanka's oldest chamber, the 172 year-old Ceylon Chamber of Commerce (CCC) welcomed the government’s decision to revive stalled negotiations with India for a comprehensive economic partnership agreement (CEPA).
"Sri Lankan government has resumed negotiations on the CEPA between Sri Lanka and India encompassing trade in services and investments apart from trade in goods. The Department of Commerce informed the chamber that the agreement is currently being reviewed by an inter ministerial committee. (We) believe that improved market access to the growing Indian economy is essential for Sri Lanka to become an economic centre in the world," the chamber said in its 2010/11 annual report.
"From this perspective, the chamber welcomes the government initiative to resume the negotiations. The chamber has informed the government of the need to have wider private sector consultations and has offered its assistance to such consultations," the CCC said adding that the CEPA would facilitate greater investment flows between the two countries.
The CEPA would have been finalised in 2008 had not an influential group of industrialists and professionals opposed the move by the President. They feared Indian goods and professionals would flood the market, but draft documents suggest that India has created more access to Sri Lanka, while Sri Lanka had tabled specific areas open to India, in terms of sector and number of professionals allowed matched by investment.
Industrialists opposed to the CEPA with India are genuinely concerned that local industries would suffer and that the complicated bureaucracy of each Indian state would make life difficult for Sri Lankan exporters.
But those in favour of the CEPA say opposition comes from those unwilling to compete and improve on efficiencies, hiding behind patriotism to stay alive, rather than finding ways to improve their processes so that more jobs and better products would be created.
Trade economists said there is a termination clause included in the CEPA so that there would be an escape rout should the CEPA prove to be unfavourable to Sri Lanka.
The Island
Sri Lanka's oldest chamber, the 172 year-old Ceylon Chamber of Commerce (CCC) welcomed the government’s decision to revive stalled negotiations with India for a comprehensive economic partnership agreement (CEPA).
"Sri Lankan government has resumed negotiations on the CEPA between Sri Lanka and India encompassing trade in services and investments apart from trade in goods. The Department of Commerce informed the chamber that the agreement is currently being reviewed by an inter ministerial committee. (We) believe that improved market access to the growing Indian economy is essential for Sri Lanka to become an economic centre in the world," the chamber said in its 2010/11 annual report.
"From this perspective, the chamber welcomes the government initiative to resume the negotiations. The chamber has informed the government of the need to have wider private sector consultations and has offered its assistance to such consultations," the CCC said adding that the CEPA would facilitate greater investment flows between the two countries.
The CEPA would have been finalised in 2008 had not an influential group of industrialists and professionals opposed the move by the President. They feared Indian goods and professionals would flood the market, but draft documents suggest that India has created more access to Sri Lanka, while Sri Lanka had tabled specific areas open to India, in terms of sector and number of professionals allowed matched by investment.
Industrialists opposed to the CEPA with India are genuinely concerned that local industries would suffer and that the complicated bureaucracy of each Indian state would make life difficult for Sri Lankan exporters.
But those in favour of the CEPA say opposition comes from those unwilling to compete and improve on efficiencies, hiding behind patriotism to stay alive, rather than finding ways to improve their processes so that more jobs and better products would be created.
Trade economists said there is a termination clause included in the CEPA so that there would be an escape rout should the CEPA prove to be unfavourable to Sri Lanka.
The Island
