Association of South East Asian Nations (ASEAN) and India Free Trade Agreement (FTA) negotiationss
1. India-Sri Lanka Free Trade Agreement (ISLFTA), which was signed in 1998, has become operational in 2000.
2. Sri Lanka is India’s largest trading partner country in the SAARC region. The bilateral trade between India and Sri Lanka has grown four times in the last nine years increasing from US $ 658 million in 2000 to US $ 2719 million in 2009.
3. The main Indian exports to Sri Lanka are Petroleum (Crude & Products), Transport Equipments, Cotton, Yarn Fabrics, Sugar, Drugs Pharmaceuticals & Fine Chemicals. The main Sri Lankan exports to India are, spices, electrical Machinery except electronic, Transport Equipments, Pulp & Waste, Natural Rubber and Paper Board.
Joint Study Group (JSG) and Comprehensive Economic Partnership Agreement (CEPA)
1. A JSG was set up in April, 2003 with a view to widen the ambit of ISLFTA and include Services and Investment. Report of JSG was submitted in October, 2003. Based on the recommendation of the JSG, CEPA negotiations were started in February, 2005 and concluded in July 2008 after 13 rounds of negotiations. But due to reservations expressed by Government of Sri Lanka, both sides have still not signed the Agreement.
2. Negotiations on Investment and Services have been resumed in December, 2010.