- Says he is for balanced growth in trade and wows to enhance ease of doing business
- Emphasises fastest growing economy in the world is beneficial for neighbours and will be a economic catalyst for the region
- States that India is opening up to the world and cautions that Sri Lanka should not fall behind in the changing and competitive world
Indian Prime Minister Narendra Modi addresses the Business Forum yesteray in Colombo - Pic Krishan Ranasinghe.
By Nisthar Cassim
India’s new iconic Prime Minister Narendra Modi yesterday allayed any lingering fears among Lankan businesses over the Comprehensive Economic Partnership Agreement (CEPA,) saying it was a win-win situation provided both countries moved boldly with belief and trust in each other.
Addressing a forum of Sri Lankan and Indian business leaders, held under the aegis of the Ceylon Chamber of Commerce, Modi said that India in the last quarter was the fastest growing global economy.
“We are confident that we can grow even faster. The progress of one-sixth of humanity is a major economic opportunity for the world. The global confidence in India has been restored. The world’s engagement with India is at a new level. But, the first claim on us should be that of India’s neighbours,” Modi said.
“I will be happy if India is a catalyst for economic growth in our own region. That is why I speak of a neighbourhood where trade, investment, ideas and people move easily across borders. India will do its part for the region,” the Indian Premier added.
Modi also said that apart from India being the largest trading partner for Sri Lanka and one of the biggest investors, since the signing of Free Trade Agreement in 2000, Sri Lanka’s exports to India have grown 16 times larger.
“This is impressive by any standards. I know there are concerns here about the huge trade imbalance.
I am prepared to work with you to address them. I want balanced growth in trade. We will try to make it easier and smoother for you to access the Indian market. That is part of my philosophy of ease of doing business in India,” said Modi, adding that earlier in the day India signed a Customs cooperation deal with Sri Lanka as the first step.
He also told the Ceylon Chamber business forum, at which Finance Minister Ravi Karunanayake and Industry and Commerce Minister Rishad Bathiudeen were present, that India was opening up to the world and that it was important that Sri Lanka did not fall behind in the changing and competitive world.
“That is why India and Sri Lanka should move boldly to conclude a Comprehensive Economic Partnership Agreement. You should also attract investments from India for exports to India. That should be the natural outcome of our proximity and your strengths,” said Modi.
Recalling two other agreements signed - $ 318 million Indian line of credit to further develop Lankan railway and $ 1.5 billion currency swap that will help stabilise the Lankan Rupee, Modi said these initiatives were not confined to development partnership. “We will also be supportive in advancing your commercial interests. I believe in Sri Lanka’s capabilities,” Modi said.
“We should engage more. We should open up to each other more. We should move forward with greater belief in our own strengths; more trust in each other; and, more confidence in the fruits of our partnership,” the Indian Premier told a packed audience of Lankan and Indian business leaders.
Modi announces on arrival visas for Lankans visiting India
- Two countries sign $ 1.5 b currency swap deal; India extends $ 318 m credit line to boost railway
Indian Prime Minister Narendra Modi, who is on a state visit to Sri Lanka, made a special goodwill gesture concerning on arrival visas for Sri Lankans visiting India as a step to enhance personal relationships.
He said that the new visa system would come into effect on 14 April 2015, as a gift on the important occasion of the Sinhala and Tamil New Year, which is also the birthday of the great Indian Buddhist leader Dr. Ambedkar.
After bilateral discussions between India and Sri Lanka, Modi announced that the Reserve Bank of India would enter into an agreement with the Central Bank of Sri Lanka to establish a currency swap worth US $ 1.5 billion to ensure stability of the Sri Lankan rupee.
The Indian Premier also announced a $ 318 million credit line to assist development of the Sri Lanka Railways. India will provide rolling stock, develop existing rail tracks and provide other requirements of the railways.
The Indian Prime Minister emphasised that the Indian Ocean did not divide India and Sri Lanka but united the two countries. “Maritime security is important not only in this region but in other parts of the world too. The issue of protecting the oceans and the maritime areas of the related countries is common to Sri Lanka, India, Mauritius, Seychelles and the Maldives and all should be alive to the important issue of regional maritime security,” Modi said.
He added that space security would also become extremely important and that these countries should have a common approach on this as well.
The Indian Premier expressed appreciation of the steps taken by the Sri Lanka Government to bring about national unity in Sri Lanka. The Indian Government and people prioritise Sri Lanka’s interest in national unity, he said. “When a neighbour becomes stronger, we are also strengthened. That is our hope,” he added.
He appreciated President Sirisena’s actions towards building unity in Sri Lanka, achieving a high level of confidence in a very short time. The steps taken include initiatives such as giving back land to the people, transfer of governors and officials as required, the release of prisoners and other acts which are highly appreciative, he said.
Modi said that he would expect the country to be stronger, after the forthcoming elections, having better relations with India.
“India will never allow any activities against Sri Lanka to be conducted in our territory,” Modi declared, and called on Sri Lanka to inform India of any such activities, and expressed India’s readiness to share information on such matters.
Responding to President Maithripala Sirisena’s request for increased training of Sri Lankan defence personnel, the India Prime Minister readily agreed to increase the intake of Sri Lankan soldiers and other services personnel, He also agreed to provide technological services and intelligence sharing of defence matters.
In the bilateral discussions, two sides also discussed Indian assistance to build houses for displaced persons as well as the plantation sector and to improve urban housing. In the health sector, there would be cooperation in ensuring Sri Lanka of a regular supply of allopathic drugs with the Indian health authorities recommending suppliers of good quality drugs and taking steps to avoid delays.
The two countries agreed to look into the short-term and long-term steps required to solve the fishermen issue.
Prime Minister Modi asked Sri Lanka to see this as a humanitarian problem and look at it sympathetically. The Sri Lankan side emphasised the need to prevent bottom trawlers being brought into Sri Lankan waters. There was agreement to hold further discussions on this matter.
