India Desk launch signals push to reboot Sri Lanka-India economic ties

From left: GITA Adviser Saisudha Chandrasekaran, ILCCI Vice President Krishna Selvanathan, Indian High Commission Counsellor (Economic and Commercial) Devika Lal, Trade and Commerce Minister Wasantha Samarasinghe, President's Special Envoy for Foreign Investment Hanif Yusoof, Industry and Entrepreneurship Development Minister Sunil Handunneththi, ILCCI President M. Raghuraman, GITA Managing Partner Priya Rawat and ILCCI Member 

• Govt. announces review of existing FTA nears conclusion

By Charumini de Silva

Sri Lanka yesterday signalled a major reset in its economic engagement with India saying a review of the existing Free Trade Agreements (FTA) by the Government is nearing completion, while policymakers and business leaders called for a shift from traditional trade towards deeper integration in investment, technology, logistics and digital commerce.

The announcement was made at a forum marking 25 years of the India Sri Lanka FTA (ISLFTA), where the launch of a dedicated India Trade Desk was positioned as a catalyst to help Sri Lankan businesses tap opportunities in what is now one of the world’s fastest-growing major economies.

Trade and Commerce Minister Wasantha Samarasinghe disclosed that a Cabinet-appointed high-level committee reviewing Sri Lanka’s FTAs is expected to submit its recommendations next month.

“We agree that as our economies evolve, so must the framework that supports our bilateral engagement. In this context, a comprehensive review of Sri Lanka’s existing Free Trade Agreements by a Cabinet Appointed High-Level Committee is currently underway. The findings and recommendations are expected to be submitted to the Cabinet ministers in the month of July for policy consideration,” he said.

The announcement comes as bilateral trade has reached nearly $ 5.8 billion, with Sri Lankan exports to India surpassing the $ 1 billion mark in 2025 for the first time. However, imports from India climbed to $ 4.3 billion, underscoring a trade imbalance that has long fuelled debate over the benefits and limitations of the 25-year-old agreement.

“We agree that as our economies evolve, so must the framework that supports our bilateral engagement,” Samarasinghe said, signalling support for expanding cooperation beyond goods trade into services, logistics, technology and digital commerce.

Industry and Entrepreneurship Development Minister Sunil Handunneththi described India as one of Sri Lanka’s most important economic partners, noting that cumulative Indian investments have exceeded $ 2.5 billion across sectors ranging from energy and manufacturing to telecommunications, banking, tourism and infrastructure.

He said the newly launched India Trade Desk would strengthen business linkages, facilitate investment and trade, and create greater opportunities for SMEs to access international markets and technical partnerships.

The strongest message from the forum, however, was that Sri Lankan businesses are failing to fully capitalise on opportunities emerging across India’s rapidly transforming economy.

Speaking on behalf of the High Commission of India, Economic and Commercial Counsellor Devika Lal said India had evolved far beyond being a large neighbouring market and should instead be viewed as a platform for innovation, manufacturing, technology and investment.

She highlighted India’s sweeping digital transformation, infrastructure modernisation and expanding middle class as factors creating significant opportunities for Sri Lankan firms across sectors including manufacturing, tourism, pharmaceuticals, engineering, electronics and services.

Global Investment and Trade Advisers (GITA) Managing Partner Priya Rawat in her detailed presentation pointed out that many Sri Lankan businesses continue to misunderstand the scale and complexity of the Indian market.

“India is not a single market,” she said, noting that each state possesses distinct industrial strengths, policy frameworks and consumer characteristics. She pointed to growing opportunities in apparel, ICT, food processing, tourism, logistics, pharmaceuticals and value-added agriculture.

Rawat said the launch of the India Trade Desk was intended to address one of the biggest barriers facing Sri Lankan companies, navigating India’s vast and fragmented business landscape.

The new desk, established by the Indo Lanka Chamber of Commerce and Industry in collaboration with the High Commission of India and operated by GITA, will provide market intelligence, partner identification, investment guidance and business facilitation services for companies seeking to enter India.

ILCCI President M. Raguraman said that while ISFTA had transformed bilateral trade and investment flows over the past quarter century, economic engagement between the two countries remained well below its potential.