Given the vast untapped potential between India and Sri Lanka, the two countries have stressed on intensive consultations for a more comprehensive framework for economic co-operation and building a special economic partnership, External Affairs Minister Salman Khurshid said on Tuesday.
“We are working on setting up a special economic zone in Trincomalee, a pharmaceutical and a textiles cluster elsewhere in Sri Lanka. I have conveyed India’s readiness to support Sri Lanka’s endeavour in capacity building in science and technology, agriculture, ICT, education and health sector. We agreed to enhance cooperation in the energy sector,” he said after the conclusion of the 8{+t}{+h} round of India-Sri Lanka Joint Commission meeting (JCM).
A joint statement issued said the two sides agreed to encourage closer economic and trade linkages with a view to doubling bilateral trade to $10 billion in the next three years. It was also agreed to initiate a dialogue between the Commerce Secretary of India and the Secretary of the Ministry of Finance and Economic Development of Sri Lanka at an early date to evolve a framework for a special economic partnership.
Khurshid said the JCM agreed on the need to extend humane treatment and abjure violence against fishermen of the two countries.
Speaking to the media, Sri Lankan Minister G.L. Peiris said this was an appropriate moment to take stock of the situation and explore practical ways and means to take the already robust relationship to a higher level.
“Which is what we have accomplished in these discussions,” he added.
He denied that Indian auto makers were being targeted by the Sri Lankan Government by imposing an additional duty on imports.
“I can tell you categorically that this is not the case. It is not discriminatory in any sense. It is based on a purely objective criteria – engine capacity. There has been some misunderstanding on this matter. India is a strong trading partner of Sri Lanka. Look at the volume of trade today, which has grown seven-fold since Free Trade Agreement.
India and Sri Lanka also signed three agreements including one for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.
ashwini.phadnis@thehindu.co.in