‘India must use window of opportunity to finalise ‘stronger’ FTA with Sri Lanka’
(Source – The Hindu, International Edition – Page No. – 15)
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Topic: GS2 – International Relations |
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Context |
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India-Sri Lanka Free Trade Agreement (FTA) Prospects
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India has an opportunity to finalize a stronger Free Trade Agreement (FTA) with Sri Lanka.
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The current Sri Lankan government is more open to economic cooperation with India than previous governments.
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India’s assistance during Sri Lanka’s 2022 economic crisis has improved bilateral relations.
Scope of the Proposed FTA
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The agreement could include trade in services and allow freer movement of workers.
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It aims to remove protectionist barriers, primarily on the Sri Lankan side.
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Strengthening ties should not disturb global powers like China and the U.S., which have interests in Sri Lanka.
Regional Economic Integration
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Economic integration with southern Indian states, particularly Tamil Nadu, has significant potential.
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A proposed bridge between Rameswaram in Tamil Nadu and Talaimannar in Sri Lanka could enhance connectivity.
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Collaboration can take place at different levels, including government-to-government and business-to-business.
Current Political and Economic Situation in Sri Lanka
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The ruling government in Sri Lanka has no strong political opposition and no corruption charges so far.
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Economic stabilization measures under the IMF program helped Sri Lanka recover from its financial crisis.
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However, the country needs faster economic growth beyond IMF reforms to avoid another crisis by 2027.
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The situation presents a perfect opportunity for India to strengthen trade and regional ties with Sri Lanka.
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Practice Question: How can India leverage the current geopolitical and economic situation to enhance trade and regional integration with Sri Lanka? (150 Words /10 marks) |
