India-Sri Lanka FTA
PRESS RELEASE
India and Sri Lanka signed the Free Trade
Agreement on 28th December 1998 and further
discussions were held be tween India and Sri Lanka
on 2nd February 2000 in New Delhi. The Agreement
provides duty free market access to both the
countries on a preferential basis in a phased
manner. India has also agreed to permit limited
quantities of imports of tea and garments from Sri
Lanka. Tea quota will be 15 million kilogram per
annum and garments 8 million pieces.
Indian and Sri Lankan delegations finalised the
procedures for effective monitoring of the tea and
garments quota today in New Delhi. The Indian
delegation was led by Mrs. Rathi Vinay Jha,
Additional Secretary, Department of Commerce,
Ministry of Commerce & Industry and the Sri
Lankan side by Mr. A. Andrew De Silva, Secretary,
Ministry of Plantation Industries.
For tea, the nodal agencies would be the Tea
Boards of both the countries and for garments the
nodal agencies would be the Textile Committee in
Mumbai and Textiles Division of the Ministry of
Industrial Development, Colombo. To facilitate
effective monitoring of the quotas, both the
Governments decided that for tea, exports will be
through the air and sea ports in Calcutta and
Cochin, whereas for garments, it will be Mumbai and
Chennai.
The Free Trade Agreement is expected to boost the
bilateral trade between India and Sri Lanka and also
consolidate the close economic, commercial and
political relations between the two countries
through increased trade and investments. As of now,
India is one of the largest exporters to Sri Lanka
and the trade balance is heavily in favour of India.
Trade
