Indian High Commissioner urges close integration between India and Sri Lanka

Sri Lanka and India have to be more closely integrated to face the economic challenges and the impact of changes of globalization.
Delivering the keynote address at the fourth annual management conference of Colombo University MBA Alumni Association in Colombo this week, the Indian High Commissioner in Sri Lanka Alok Prasad said that India treats Sri Lanka as a very important friendly neighbour and that is why they have extended many concessions to the island nation.

The Indian government has allowed SriLankan Airlines to operate 120 flights per week to 18 Indian destinations and 70 percent of cargo shipment out of India is handled by Colombo. Prasad said that such concessions were not given to any other country by Indian authorities.

“Exports from Sri Lanka to India have increased nine times after the Free Trade Agreement and likewise India’s exports to Sri Lanka have tripled,” he affirmed. He further added that the negativism should be reduced in both countries and that regional connectivity is to be strengthened to improve people to people contacts and free flow of information. He emphasized the need of a powerful regional block like EU to manage economic affairs in South Asian region.

Sri Lanka’s exports to India increased from US$47.1 million in 1999 to US$589.1 million. in 2005. However, exports have declined to US$ 489.5 million and US$514.9 million in 2006 and 2007, respectively. Since 2003 India has become the third largest export destination for Sri Lanka next to USA and UK, he said. Sri Lanka’s imports from India continuously increased from US$510.2 million in 1999 to US$2744.3 million in 2007.

Sri Lanka’s exports to India as a percentage of its total exports to the world have substantially increased from 1% in 1999 to 8.8% in 2005. However this share has declined to 6.7 % in 2007. Sri Lanka’s imports from India as a percentage of its total imports from the world has increased considerably from 10% in 1999 to 24% in 2007.