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 faces the urgent need to initiate fresh trade negotiations with India. Experts suggest that the Sri Lankan government should consider appointing a Chief Negotiator to address any existing trust deficits, according to a recent report.
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 as the United States imposes a 20 percent tariff on key Sri Lankan exports, states an article in Eurasia Review.
In response, 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 consistently advised Colombo to update the existing free trade agreement to tackle foreseeable challenges.
“At this stage, the Economic and Technology Cooperation Agreement (ETCA) has become a key topic of discussion,” the report notes. However, progress on improving the India-Sri Lanka Free Trade Agreement (ISFTA) has stalled despite numerous rounds of talks under different governments, all aimed at expanding trade and investment with India, according to A. Jathindra, a Sri Lankan-based independent political analyst.
India remains interested in advancing these negotiations. Santhos Jha, India’s High Commissioner to Sri Lanka, said that India is not pushing the ETCA but is “waiting for Sri Lanka to wake up and realize it is indeed beneficial.”
Sri Lanka’s Deputy Minister of Foreign Affairs, Arun Hemachandra, emphasized caution in approaching such agreements. “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 stated.
He further added, “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.”
According to the report, the key challenge lies in how Colombo can strategically manage its relationships with stronger nations to best serve its own national interests.
*Disclaimer: This story is from a syndicated feed. No changes have been made except for 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
Leave a Reply