Volume : 6, Issue : 4, April - 2017

Sri Lankan Economic cooperation and Trade related Issues

Prof. Dr Jayan V. K

Abstract :

<p>&nbsp;<span style="font-family: &quot;Times New Roman&quot;, serif; text-align: justify;">The Economic relations between India and Sri Lanka has started even before the pre-colonial times. But the relationship had its biggest boost when the two countries signed a bilateral agreement called </span><span style="font-family: &quot;Times New Roman&quot;, serif; text-align: justify;">&nbsp;</span><span style="font-family: &quot;Times New Roman&quot;, serif; text-align: justify;">India&ndash;Sri Lanka Free Trade Agreement (ISFTA) on March 2000. The agreement aims to promote economic links between India and Sri Lanka through enhancement of bilateral trade and investment. The agreement covers trade in goods and requires the two countries to offer market access for each other&rsquo;s exports on a duty-free basis and concessionary tariffs.</span></p> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10;line-height:150%"><span style="font-family:&quot;Times New Roman&quot;,serif;mso-fareast-font-family:&#10;&quot;Times New Roman&quot;">This study focuses on the India&ndash;Sri Lanka Economic cooperation and trade related issues between the two countries. In the recent decades the bilateral trade between the two countries has increased steadily and India became the most favored import destination for the Sri Lankan importers immediately after the implementation of the free trade agreement.&nbsp;<o:p></o:p></span></p>