Sri Lanka Needs To Appoint Chief Negotiator to Bridge Trust Gap & Propel India Trade Pact
New Delhi: As US reciprocal tariffs begin to impact nations globally, Sri Lanka finds itself needing to initiate fresh trade negotiations with India. According to a new report, the Sri Lankan government must also consider appointing a Chief Negotiator to address any existing trust deficit between the two countries.
Sri Lanka is currently at a critical juncture, with its economic prospects for 2026 clouded by external shocks. Economic growth is forecasted to slow to 3.3 percent following the United States’ imposition of a 20 percent tariff on key Sri Lankan exports, the article in Eurasia Review highlights.
In response to these challenges, Sri Lanka has requested India to expand its export quota under the Indo-Lanka Free Trade Agreement (ISFTA), which was signed 25 years ago. Meanwhile, India has continually advised Colombo to update the existing free trade agreement to better address foreseeable issues.
“At this stage, the Economic and Technology Cooperation Agreement (ETCA) has become a key topic of discussion,” the report by A. Jathindra, a Sri Lankan-based independent political analyst, notes. However, progress on improving the India-Sri Lanka Free Trade Agreement (ISFTA) has stalled despite numerous rounds of talks under various governments aimed at expanding trade and investment with India.
India remains interested in moving forward. Santhos Jha, India’s High Commissioner to Sri Lanka, stated that India is not pushing ETCA but is “waiting for Sri Lanka to wake up and realise it is indeed beneficial.”
From the Sri Lankan side, Deputy Minister of Foreign Affairs Arun Hemachandra said, “If we can secure favourable terms, we are open to the agreement. If not, we will not sign it. We are committed to safeguarding the nation’s economic sovereignty.”
He further emphasized caution, noting, “When there is one stronger nation and one weaker nation, we ought to understand that there is a propensity for the stronger nation to dominate the weaker nation. Therefore, we must proceed with caution.”
The report concludes that the key challenge for Colombo is how to strategically manage relationships with stronger nations in a way that serves its own national interests.
*Disclaimer: This story is from the syndicated feed. Nothing has changed except the headline.*
https://www.freepressjournal.in/business/sri-lanka-needs-to-appoint-chief-negotiator-to-bridge-trust-gap-propel-india-trade-pact
You may also like
You may be interested
The New York Times
- Benin Coup Attempt to Oust Talon Has Been Foiled, Interior Minister Says 2025 年 12 月 7 日 Amelia Nierenberg, Saikou Jammeh and Ephrat Livni
- Superpower Competition: The Missing Chapter in Trump’s Security Strategy 2025 年 12 月 7 日 David E. Sanger
- The Impact of Trump’s Slipping Approval Rating 2025 年 12 月 7 日 Tyler Pager, Claire Hogan, Whitney Shefte and Stephanie Swart
- Katy Perry Posts Photos With Justin Trudeau Amid Romance Rumors 2025 年 12 月 7 日 Amanda Holpuch
- Bessent Says He Divested From Soybean Farms After Ethics Office Warning 2025 年 12 月 7 日 Alan Rappeport
- How Stablecoins Can Help Criminals Launder Money and Evade Sanctions 2025 年 12 月 7 日 Aaron Krolik
- Russian Drone Strike on Chernobyl Hasn’t Led to Rise in Radiation Levels 2025 年 12 月 7 日 Kim Barker
- This Nebraska Prison Rehabilitated Inmates. Until ICE Paid to Fill It With Immigrants. 2025 年 12 月 7 日 Allison McCann and Cheney Orr
- Presidential Power Gets Tested Before Supreme Court After Long Conservative Project to Shrink Agencies 2025 年 12 月 7 日 Ann E. Marimow
- The Crucial Lesson of a Forgotten Nixon-Era Episode 2025 年 12 月 7 日 Dan Sturman
Leave a Reply