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The Second Round of negotiations led by the Commerce Secretaries of India and Sri Lanka -- Shri S.N. Menon, and Mr. S. Urithamulla respectively – on the Bilateral Comprehensive Economic Partnership Agreement (CEPA) was held here on 10-11th February, 2005.
Both sides agreed to set up a Trade Negotiating Committee, its working groups & sub groups and set out a clear road map for negotiations to conclude the CEPA expeditiously. According to a Joint Press Statement issued here this evening, it was decided that the working groups should submit their report in four months i.e. by June, 2005 to enable CEPA to be concluded as early as possible. The negotiations would include widening and deepening free trade in goods under the existing India-Sri Lanka FTA (Free Trade Agreement) which is in operation since March 2000. On services, investment and economic cooperation, the working groups will identify the areas which would be of mutual benefit and recommend the modalities for substantial increase in bilateral trade and economic cooperation. In this regard, it was agreed that the report of the Joint Study Group submitted to the two Governments in October 2003 would be a useful reference document and provide practical inputs for negotiations.
It was also decided to explore the possibility of setting up of an Economic Cooperation Fund which would facilitate the flow of investments from India to Sri Lanka.
Discussions were held in an atmosphere of warm friendship and cordiality. Issues pertaining to the problems which have arisen in the process of implementation of the FTA in goods were also discussed. The issue of substantial underutilization of garment quota by Sri Lanka under existing arrangements was addressed by India to the satisfaction of Sri Lankan side.
It was agreed to hold the next round of negotiations in Colombo in the month of March 2005.
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