India and Sri Lanka held talks on Trade and Investment

Sri Lanka and India on 24-25 June 2013 held discussion in Colombo on trade, investment and economic cooperation. It is aimed at doubling the bilateral trade volume to the tune of 10 billion US dollars in the next three years. India is Sri Lanka’s leading trade partner and that bilateral trade between the two countries has now reached 5 billion US dollars.

During the talks, India and Sri Lanka decided to expand the bilateral trade in a balanced way by utilising the opportunities available between the two neighbouring nations. The talks included economic, trade and development related issues between the two countries.

The Free Trade Agreement (FTA) between India and Sri Lanka was the first ever bilateral trade agreement for both nations. It was signed in 1998 and enforced since 2000. India is considered as Sri Lanka’s foremost development partner in public investment strategy. India has provided the assistance and credit totaling 1.75 billion US dollars to Sri Lanka. India is responsible for construction of 50000 houses in the north-east area of Sri Lanka.  India is also assisting in public transport network infrastructure rebuilding.