India And Sri Lanka


 
 
Concept Explanation
 

India And Sri Lanka

India And Sri Lanka: Brief on India -Sri Lanka Relations The relationship between India and Sri Lanka is more than 2,500 years old. Both countries have a legacy of intellectual, cultural, religious and linguistic interaction. In recent years, the relationship has been marked by close contacts at all levels. Trade and investment have grown and there is cooperation in the fields of development, education, culture and defence. Both countries share a broad understanding on major issues of international interest. In recent years, significant progress in implementation of developmental assistance projects for Internally Displaced Persons (IDPs) and disadvantaged sections of the population in Sri Lanka has helped further cement the bonds of friendship between the two countries.

  • India and Sri Lanka are member nations of several regional and multilateral organizations such as the South Asian Association for regional cooperation (SAARC), South Asia Co-operative Environment programme, South Asian Economic Unionand BIMSTEC, working to enhance cultural and commercial ties.
  • Since a bilateral free trade agreement was signed and came into effect in 2000, Indo-Sri Lankan trade rose 128% by 2004 and quadrupled by 2006, reaching US$2.6 billion.Between 2000 and 2004, India's exports to Sri Lanka in the last four years increased by 113%, from US$618 million to $1,319 million while Sri Lankan exports to India increased by 342%, from $44 million to $194 million.Indian exports account for 14% of Sri Lanka's global imports.
  • India is also the fifth largest export destination for Sri Lankan goods, accounting for 3.6% of its exports.
  • Both nations are also signatories of the South Asian Free Trade Agreement(SAFTA). Negotiations are also underway to expand the free trade agreement to forge stronger commercial relations and increase corporate investment and ventures in various industries.
  • The year 2010 is predicted to be the best year for bilateral trade on record, with Sri Lanka's exports to India increasing by 45% over the first seven months of the year
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