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India’s Commerce Secretary Rajeev Kher with Industry and Commerce Minister Rishad Bathiudeen
Subsequent to the announcement by Prime Minister of India Narendra Modi during the visit of President Maithripala Sirisena to India in February 2015 that Commerce Secretaries of both countries would meet soon to review bilateral commercial relations, Indian Commerce Secretary Rajeev Kher visited Sri Lanka on 4 March for official talks.
The delegation level talks were co-chaired by Kher and Ministry of Industry and Commerce Secretary S.S. Miyanawala. The Indian delegation also included High Commissioner of India Y.K. Sinha and Department of Commerce Joint Secretary Arvind Mehta.
The current round of consultations was the third round of Commerce Secretary level interactions, the earlier rounds having taken place in Colombo in June 2013 and in New Delhi in January 2014.
Issues discussed included implementation of India-Sri Lankan FTA, trade, investments, economic cooperation and related issues, and upgrading the economic engagement to include investment and services. Issues pertaining to the imbalance in trade, non-tariff barriers were also taken up.
Both sides also continued dialogue on moving towards investment-based trade. It was agreed that there was considerable potential to expand bilateral trade, in a balanced manner through optimal utilisation of the opportunities available between the two economies.
The two delegations also discussed specific suggestions to expand trade and investment ties. The Indian side reiterated that Indian investments would increase Sri Lankan export capacity and the need for establishment of greater linkages with production and supply chains in the Indian market.
The Indian side recalled the earlier Sri Lankan offer of attracting Indian investments, inter alia, in the manufacture of automobile parts, pharmaceuticals, textiles and engineering products, in Special Economic Zones. The investments could be in the form of joint venture projects to encourage Sri Lankan private sector and state enterprises to work together with Indian enterprises.
Cooperation in the energy sector, including in the field of non-conventional energy was also discussed. It was pointed out that Sri Lanka has huge potential in the wind energy sector which could be harnessed. The talks also focused on interconnectivity of grid between the two countries.
The two sides noted that the Joint Working Group on tourism is likely to meet in April 2015. Both sides noted the importance of connectivity between the two countries and acknowledged that current levels of connectivity though good, needed to be further enhanced to boost tourism. Both sides concurred on the importance of early resumption of ferry service between Talaimannar and Rameshwaram and Colombo and Tuticorin, as well as early conclusion of the Revised Air Services Agreement, which had been initialed in September 2013.
Towards creation of an optimal support framework at both ends, both sides noted that the Revised Double Taxation Avoidance Agreement signed in January 2013 had come into force, the MOU on Cooperation in the Fields of Textiles, Handloom, Powerloom and SMEs was signed in September 2013 and the Joint Working Group under this MOU would meet shortly and the Agreement on Cooperation and Mutual Assistance in Customs Matters would also be signed shortly.
The two sides agreed to cooperate closely to forge closer economic and trade linkages towards taking the economic and commercial relations to the next level.
Kher also called on Minister of Industry and Commerce Rishad Bathiudeen.
It was decided to hold next round of consultations at a mutually-convenient date in India.
