Sri Lanka expects to sign the long-awaited Economic and Technological Cooperation Agreement (ETCA) with India to boost bilateral trade by the 2024-25 financial year, Indian media said.
Citing sources familiar with the matter, the Indian news agency Mint, said that India and Sri Lanka are on the verge of signing the ETCA that is expected to boost bilateral trade between the two neighbouring countries.
The agreement is expected to be concluded in the financial year 2025, marking a milestone in their economic relationship.
The last round of talks between the two parties was held in January 2024, “there is willingness from both India and Sri Lanka to get the agreement done. Talks are progressing swiftly,” one of the sources said to Mint on the condition of anonymity.
The ETCA which is built upon a previous free trade agreement (FTA) that was implemented in 2000 will further strengthen economic ties between India and Sri Lanka. The two countries relaunched talks on ETCA in November 2023 after a five-year gap, demonstrating their commitment to deepening their economic cooperation.
“Despite the challenges posed by the global pandemic, both India and Sri Lanka have shown strong determination to achieve this agreement. The recent progress in negotiations indicates that talks are moving quickly, with expectations for a conclusion during 2024-25,” the media report said.
It said while specific details about the agreement are yet to be disclosed, officials have discussed various chapters including rules of origin, dispute resolution, and technical and non-technical barriers to trade, among other critical issues. However, there is still much ground to cover before reaching a final consensus.
ECTA received wide criticism from the general public when it was talked about in the former Yahapalana Government period between 2015 and 2019 as it allegedly allowed Indian labourers to work in Sri Lanka.
Source: the morning
