The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) has urged Indian Authorities to remove barriers that prevent the strengthening of people-to-people contact between the two countries before the signing of the Comprehensive Economic partnership Agreement (CEPA).

The CEPA will include investment and services in addition to deepening commitments undertaken in the Indo-Lanka Free Trade agreement. FCCISL President Nawaz Rajabdeen told The Sunday Times FT that Sri Lanka has already given visa free access to people in the SAARC region with a view to becoming a trading hub in the South Asian region but India is still reluctant to interact with Sri Lanka although it has agreed to open up the service sector under CEPA. He added that India is imposing non –tariff barriers on Sri Lankan goods and the local companies have had problems while interacting with India due to several legal issues and bureaucratic red tape. Even some of the Indian diplomats were not cooperative when Sri Lankans seek visas to visit India, he said.

Mr. Rajabdeen pointed out that agreements with neighbouing countries are essential for a country to progress economically. He said Singapore could develop its economy after expansion of its trade activities with the major countries. Sri Lanka would have benefited from a deep economic integration with a growing economy like India. This is because such economic engagements have a trickle-down effect. Moreover, asymmetries of both parties are taken care of in such agreements through checks and balances, he said, He added that FCCISL is not opposing the implementation of CEPA but it should be favourable to both countries.