Sri Lanka finalises ETCA framework with public private sector consultations
View(s):Sri Lanka is now in the process of finalising the Indo-Lanka Economic and Technology Agreement (ETCA) framework and to have final agreements ‘in place’ for signing by May next year by Indian Prime Minister Narendra Modi and Prime Minister Ranil Wickremesinghe.
A top level Sri Lankan official delegation will visit India to attend a meeting in New Delhi to discuss modalities of the proposed agreement that will cover investment and services, official sources revealed, adding that this is completely different from the earlier proposed Comprehensive Economic Partnership Agreement (CEPA) which drew a lot of flak from local industrialists and professional associations.
The issues relating to the non-tariff barriers between the two countries are now been addressed. The PM told Parliament recently that the government does not agree with the clauses that were included in CEPA by Rajapaksa government and the “harmful” agreement has been completely removed. A steering committee meeting of ETCA was held in Colombo on November 13 and it was agreed to seek views of private sector stake holders in the tourism and other relevant sectors on the framework of the proposed agreement.
Accordingly a meeting of tourism industry leaders and heads of associations was held in Colombo recently under the patronage of the Ministry of Tourism Development. There, it was agreed that hotel investments should be subject to existing laws on leasehold rights on land and property while for investments in travel and tour operating entrepreneurs, the rule of foreign 40 per cent and local 60 per cent should be maintained.
When providing employment for Indian skilled personnel in Sri Lanka, representatives who attended the meeting concluded that that approval should be granted by the Director General, Sri Lanka Tourism Authority on a case-by-case basis based on the non –availability of skilled persons locally.
It was also decided not to allow Indian tour guides to operate in Sri Lanka except for tour representatives, tour leaders and language experts. The new agreement will look into expanding people contact particularly in tourism and training sectors.
The sources said Minister of Development Strategies and International Trade Malik Samarawickrama held constructive discussions with several professional organisations on the negotiation of the Services Chapter of the proposed ETCA.
Representatives of the professional organizations’ present at the meeting agreed to nominate a representative group of three to four persons to work with relevant government officials to ensure that the outcome of the negotiations of the Services Chapter reflect the national interest.
It has been revealed at the meeting that Indians would be allowed to enter into only two specific sub- sectors – IT-enabled services and highly skilled workers for Colombo Dockyard, the sources said. The India-Sri Lanka signed Free Trade Agreement (FTA) in 1998 and thereafter the two countries were engaged in negotiating the CEPA.
These negotiations began in 2005 and concluded in July 2008, after 13 rounds of negotiations. It was halted following protests by a section of the politically powerful business community during Rajapaksa regime. (Bandula)