Indo-Lanka ‘powwow’ on trade pact
The Sri Lankan government, seen as bowing to pressure from different stakeholders, is now considering scrapping the controversial foreign labour import clause from the Economic and Technology Cooperation Agreement (ETCA) with India.
International Trade and Development Minister Malik Samarawickrama speaking to journalists on the sidelines of the media briefing held in Colombo on Tuesday along with the visiting Indian Commerce and Industry Minister Nirmala Sitaramanan commented on the Mode 4 clause under ETCA, saying; “We don’t want to include that.”
However, he also noted that imported labour would continue to trickle into the country through a controlled manner as currently carried out. Ms. Sitaramanan said during the briefing that the ETCA negotiations were “just beginning” and that they were not interested in rushing into it and there would not be any pressure to conclude within a particular time frame.
During her 2-day visit, the minister held discussions with Prime Minister Ranil Wickremesinghe and the trade chambers focusing on ongoing projects, future investments, the ETCA deal and the current situation.
She also said that Sri Lanka would stand to gain from Indian investments worth US$2 billion in the next four years. The visiting minister pointed out that “whilst the opportunity exists and the synergies between India and Sri Lanka exist it’s important that this negotiation has to be done in detail without any pressure”. One of the opportunities identified in signing the ETCA agreement was the access to the 1.25 billion-Indian market, Minister Sitaramanan said. Insisting that this was a mutual trade pact, she said “India looks forward to the agreement with Sri Lanka” adding that “an agreement of this nature should be done with responsibility and understanding.”
Ms. Sitaramanan explained that the business community had voiced their concern during her meeting with the trade chambers during this visit to Colombo. In fact, in response to a query from a journalist, the minister insisted that they were keen to have a mutually beneficial agreement and that “nothing is done unilaterally.” Commenting on Sri Lanka’s stance to abandon the Sampur coal power project opting for more renewable energy, Minister Sitaramanan did not think this was a “bitter” experience but looked at it as a national priority based on international commitments.
Discussions with the Indian government had also centred on the establishment of a joint venture refinery with the Indian Oil Company (IOC) and the Sri Lankan government to be carried out in phases for which reasons, Petroleum Resources Minister Chandima Weerakkody is expected to visit India in this context. The Indian government is also looking at the development of the Palaly airport which would be finalised by the next three months, Minister Samarawickrama said. The minister said that while the Government would like to finalise the ETCA agreement by December this year, the negotiations would now conclude by around March 2017.