BUSINESS

Sri Lankan industry split over economic pact with India

he Ceylon Chamber of Commerce (CCC) has come out in support of the proposed Economic and Technology Cooperation Agreement (ETCA) with India even as certain sections of society in Sri Lanka continue to express reservations over the issue. For the island nation, being a small economy with a limited domestic market, “trading more with the world and welcoming more business and investment partnerships from abroad is our only path to prosperity. In this, greater openness to trade in services cannot be ignored, owing to its strong and growing link to goods trade and investment. Services liberalisation needs to be pursued, within a mutually-beneficial framework and following stakeholder discussions,” according to the 177-year-old CCC. It also cautioned the Sri Lankan Government against protectionism.

The Chamber stated that the country in the last 15 years became “more closed and more inward looking” than before with a falling share of global exports and a declining exports-to-GDP ratio.



The Ceylon Chamber of Commerce also wants the Indian government to give priority to solving non-tariff barriers



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