On Tuesday, speaking at a virtual event named “Deepening Economic Collaboration between India and Sri Lanka”, India’s High Commissioner in Sri Lanka, Gopal Baglay, called for strengthening Indian-Sri Lankan economic relations. The event was organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), in collaboration with the Lakshman Kadirgamar Institute of International Relations and Strategic Studies. The virtual meeting was attended by the Secretary of the Ministry of Foreign Affairs, Ravinatha Aryasinha, and the President of the FICCI, Sangita Reddy, along with representatives from the Sri Lankan Board of Investment and Tourism Promotion Board.
Baglay called for improving collaboration in the areas of energy, infrastructure, manufacturing, pharmaceuticals and education. He highlighted the importance of sustained cooperation to develop long-term economic relations that are based on a “predictable policy”. He further highlighted the need for “dynamic and comprehensive” bilateral ties between India and Sri Lanka to “effectively and expeditiously” tackle the consequences of the COVID-19 outbreak. Taking about the need for “economic security”, he further said that the post-pandemic recovery requires the collaboration of the “economic strengths” of both the countries. This was also reiterated by Aryasinha, who spoke on the need to utilise the existing friendships between Indian and Sri Lankan commercial entities, and further develop such relationships and work towards economic collaboration in the post-pandemic world. He additionally highlighted several opportunities in Sri Lanka that would be attractive for investments by Indian companies.
Trade relations between India and Sri Lanka have been surging since the signing of the Free Trade Agreement in 2000. According to figures reported by Sri Lankan Customs, annual bilateral trade between India and Sri Lanka amounts to around $4.93 billion. While Sri Lankan imports from India were valued at $4.16 billion, Sri Lanka exported goods worth $ 767 million. Further, India also provides “development assistance” to Sri Lanka, for which India has committed approximately $3 billion.
However, in the recent past, the relationship has been driven by India’s strategic concerns in the Indo-Pacific region, caused by China’s Belt and Road Initiative, and India is likely concerned by the Hambantota Port and loan deals that Sri Lanka recently signed with China. The United States, too, is pushing India to strengthen its leadership in the area to counter Chinese aggression. Recently, India also announced its decision to construct a solar power park in Sri Lanka. Several commentators saw this as a “foreign policy tool” in response to the growing Chinese investments in the region.
Indian High Commissioner in Sri Lanka Calls for Stronger Post-Pandemic Economic Ties
On Tuesday, Gopal Baglay spoke on a virtual event organised by the FICCI.
July 23, 2020
SOURCE: HIGH COMMISSION OF INDIA, COLOMBO