“Ceat-Kelani JV Has Had Exceptional Success”
(India/Rubber Asia) When the Indo-Lanka Free Trade Agreement (FTA) was signed in December 1998, informed opinion may have considered it experimental. In Sri Lanka, the questions raised were: “Will Indian goods flood the Sri Lanka market?” and “Does Sri Lanka have the resources to penetrate the vast Indian market?”
The FTA became operational in March 2000, and trade across the Palk Strait has expanded significantly since then. When the Sri Lankan and Indian Prime Ministers met in June 2002, they decided to widen the scope of cooperation under the FTA which dealt with trade and tariffs, to include services, technology and investment, thus moving the two economies towards greater integration and propelling them forward to a Comprehensive Econonomic Partnership Agreement (CEPA).