Jul. 3 – During recent negotiations India and Sri Lanka decided to increase their economic ties so as to double bilateral trade to US$10 billion over the next three years. The meetings, which were held in Colombo, included representatives from both countries and discussed plans to further enhance their trade and investment relationships.
“Recognizing that India is Sri Lanka’s leading trade partner and that bilateral trade between the two countries has now reached $5 billion, it was agreed that the potential which remains to expand bilateral trade further to the tune of $10 billion would be exploited in the next three years,” said a statement released by the Sri Lankan government.
India is Sri Lanka’s leading development partner, with assistance and credit totaling US$1.75 billion annually. Currently, India is planning multiple projects in Sri Lanka, which includes the construction of 50,000 houses in the former conflict-stricken areas in the north, east and central hill plantation areas. Additionally, India is helping to fund Sri Lankan infrastructure and their public transport network.
India’s major exports to Sri Lanka include automobiles, mineral fuel, pharmaceuticals, iron and steel. India primarily imports natural rubber, poultry feed, copper and paper products from Sri Lanka.
India and Sri Lanka’s bilateral trade relationship has been growing ever since 1998, the year during which they signed their first free trade agreement.
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