India, Sri Lanka plan FTA in services sector

Mumbai: India and Sri Lanka, which has a Free Trade Agreement in goods, is planning a similar deal for the services sector.

This emerged during a meeting of the World Trade Center-Mumbai, in association with the All India Association of Industries (AIAI), which hosted a business delegation from Sri Lanka to strengthen bilateral trade, investment cooperation, and industry partnerships between the two countries. 

“India and Sri Lanka share a deep-rooted relationship that goes back millennia. We already have a Free Trade Agreement in goods, and we are now looking to expand cooperation through a Free Trade Agreement in services, which will further strengthen our economic integration,” said Shirani Ariyarathne, Consul (Commercial), Consulate General of Sri Lanka.

“There are significant opportunities in tourism, textiles, automobiles, infrastructure development, and IT, and we are also exploring the further expansion of industrial zones to facilitate greater business engagement. With Sri Lanka offering preferential market access and a rapidly growing economy, the prospects for enhanced bilateral collaboration are extremely promising,” she added.

“Since the Free Trade Agreement, India and Sri Lanka have come a long way in strengthening their economic partnership. Bilateral merchandise trade between the two countries has crossed USD 6 billion in FY 2024–25, and we expect this to double over the next five years,” said Dr Vijay Kalantri, Chairman, WTC-Mumbai and President, AIAI. 

“With nearly 4,000 products enjoying tariff concessions, there is significant scope to expand trade beyond traditional sectors. In this evolving geopolitical environment, strengthening regional partnerships is essential to ensure economic resilience and shared prosperity,” he added. 

“There is high potential for collaboration in sectors such as textiles and apparel, pharmaceuticals, automobiles, agriculture and food processing, IT and digital services, renewable energy, and tourism. India remains one of the largest contributors to foreign direct Investment in Sri Lanka, reflecting strong business confidence and the long-term potential of the bilateral partnership. We are proud to be hosting our sixth delegation from Sri Lanka in the past six months, which reiterates the growing momentum in India–Sri Lanka engagement,” said Dr Kalantri.

“The Sri Lanka Export Development Board plays a vital role in promoting the country’s export sector, with total exports exceeding USD 17.3 billion last year, including USD 13.6 billion in merchandise trade, these exports contribute nearly 19% to GDP. The delegation visiting today represents this diversity with companies from lifestyle, leather, wellness, renewable paper, handicrafts, and traditional batik products, and creative industry products showcasing Sri Lanka’s rich heritage and export capabilities,” pointed out Mangala Madhuwanthi, Export Development Board, Sri Lanka.