Financial Times

CEPA may reduce exorbitant legal fees
High fees charged by top lawyers in Sri Lanka could be reduced if Indian lawyers are allowed to practise here under the Comprehensive Economic Partnership Agreement (CEPA) being negotiated between the two neighbours, a senior economist said last week.

“The talks could also pave the way for Sri Lankan professionals to practise in India and for local tour operators to function there to provide services to Sri Lankan pilgrims,” said Dr Saman Kelegama, director of the Institute of Policy Studies.

“The services sector liberalization under the CEPA is not easy,” he told a seminar on the CEPA organized by the Central Bank. “Changing regulations is not easy and also there are vested interests which need to be convinced that change is good for them and the country.”

Both countries are discussing Mutual Recognition Agreements to recognize each other’s professional qualifications that would enable professionals to work in each other’s countries. Dr Kelegama described India’s request to allow her professionals to work in the island as “very sensitive.”

In one sector where this could happen, law, a few top lawyers are dominant and their fees are exorbitant, he said. “If Indian lawyers are free to practise here such fees would come down,” Dr Kelegama said. “The legal lobby would not like that.”

The same was true for other professions like architecture. However, he said that under the services liberalisation component of CEPA, the opening up of such sectors would only be done after talks with professional organizations, such as the Sri Lankan and India medical councils.

The CEPA could help Sri Lanka overcome shortages of skilled medical professionals by allowing Indians to work here, such as nurses in the north and east, and cardiologists and laboratory technicians.

It could also help cope with the shortage of English teachers in Sri Lanka.
“We can get English teachers from India at a lower cost than from elsewhere,” Dr Kelegama said.

“When the impact of such liberalization is visible to the people, then professional bodies will appreciate the need for opening up particular areas for the benefit of the country.”

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