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FTA with Sri Lanka: India seeks duty concessions on vehicles, easier visa norms for its professionals’ entry
India is seeking customs duty concession on a number of goods including cars, commercial vehicles and machinery from Sri Lanka under a comprehensive free trade agreement (FTA), talks for which are underway, PTA has reported quoting an official.
India has also sought easier visa norms to further facilitate entry of Indian professionals, according to the official.Text of the PTI report: The 14th round of talks between senior officials of India and Sri Lanka was concluded recently in Colombo.
Issues which came up for the talks included rules of origin, goods, services, and technical barriers for trade.On the other hand, Sri Lanka has sought removal of a quota on apparel exports to India. The island nation is also asking for duty concessions on tea and certain agricultural commodities.
The official said that as elections are announced in Sri Lanka, the next round of negotiations between the two countries will be held after that.The two nations have already implemented a free trade agreement in goods and now they are negotiating to expand the pact by including more goods and services.
The India-Sri Lanka Free Trade Agreement (ISFTA) came into force in March 2000. It enhanced economic relations between the two countries by reducing tariffs on a wide range of goods.
Since the original ISFTA focused solely on goods, both countries have been negotiating for several years to expand it into a Comprehensive Economic Partnership Agreement (CEPA), which would include services, investment, and other areas of economic cooperation.
Under the current FTA, India allowed limited imports of garments from Sri Lanka at a 50 percent tariff (or customs duty) concession for up to eight million pieces annually, with a requirement that six million of these pieces use Indian fabric.
Additionally, India offered a 50 percent tariff concession on up to 15 million kg of tea from Sri Lanka each year.
Think tank Global Trade Research Initiative (GTRI) said that Sri Lanka may be seeking removal of the quota on garments, especially considering that India has allowed duty-free imports of garments from Bangladesh under the South Asia Free Trade Agreement (SAFTA) for Least Developed Countries (LDCs).
“However agreeing to this request may not be easy for India as allowing duty free imports has led to a significant increase in garment imports from Bangladesh, growing from USD 144.25 million in FY’2014 to USD 739.06 million in FY’2024, a cumulative growth of 412.34 per cent,” GTRI Founder Ajay Srivastava said.
Sri Lanka has placed items like automobiles and electrical goods on its negative list, restricting their import.
Since the implementation of the ISFTA, trade between the two countries has experienced fair growth.
India’s exports to Sri Lanka increased from USD 499.3 million in FY’2000 to USD 4.17 billion in 2023-24, a cumulative growth of 735.2 percent. Meanwhile, imports grew from USD 44.3 million to USD 1.4 billion over the same period.
In the last fiscal, India’s key exports to Sri Lanka included petroleum products (USD 704 million), cotton (USD 260 million), pharmaceuticals (USD 255 million), refined sugar (USD 206 million), fabric (USD 223 million), machinery (USD 171 million), pepper (USD 90.9 million), car and motorcycle parts (USD 79.3 million), onions (USD 63.4 million), and pulses (USD 32 million).
Notably, India’s exports to Sri Lanka fell from USD 5.1 billion in FY’2023 to USD 4.17 billion in FY’2024, primarily due to a significant reduction in petroleum product exports, which declined from USD 1.78 billion to USD 704 million, GTRI said.
India’s major imports from Sri Lanka in FY 2024 were coffee (USD 103.7 million), garments (USD 55.65 million), animal feed (USD 72.2 million), areca nut (USD 65.5 million), light pepper (USD 44.4 million), rough diamonds (USD 26.9 million), and rubber (USD 26.7 million).
A Sakthivel, Apparel Export Promotion Council Southern Region in-charge, said that India should not extend concessions for garments to Sri Lanka, as the domestic industry could be impacted because of that.
“We, too, make those garments and I think India should not give more concessions,” Sakthivel said.
News
Women’s T20 World Cup 2026 warm-up: Chamari Athapaththu’s 94 helps Sri Lanka beat Pakistan
Captain Chamari Athapaththu’s 94 helped Sri Lanka chase down 169 with ease against Pakistan. Athapaththu and Vishmi Gunaratne together started strongly, putting up a 159-run stand as Sri Lanka won with eight balls to spare.
With the ball, right-arm seamer Chethana Vimukthi, who was called up as the injured Shashini Gimhani’s replacement. for the T20 World Cup, made an impact for Sri Lanka, finishing with figures of 4 for 31. Vimukthi broke the 60-run stand between openers Muneeba Ali and Gull Feroza, following which Pakistan lost wickets regularly. Captain Fatima Sana top-scored for Pakistan from No. 7 with 37 to push the total past 150. In reply, Sri Lanka made easy work of the chase, with Athapaththu itting five sixes and nine fours in her 56-ball stay.
Scores:
Sri Lanka Women 169 for 1 in 18.4 overs (Chamari Athapaththu 94, Vishmi Gunaratne 63*; Fatima Sana 1-20 ) beat Pakistan Women 168 for 8 in 20 overs (Muneesha Ali 36, Gull Feroza 26. Ayesha Zafar 10, Saira Jabeen 12, Fatima Sana 37, Aliya Riyaaz 22; Sugandika Kumari 1-33, Chethana Vimukthi 4-31, Malki Madara 1-19, Nimasha Meepage 1-16) by nine wickets
(Cricinfo)
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Open hearing on coal procurement inquiry set for July first week
Open hearing of evidence into alleged irregularities in coal procurement is scheduled to begin in the first week of July, while the Presidential Commission of Inquiry continues recording statements from relevant officials, investigators said.
So far, the Commission has recorded statements from around 40 government officials, including members of procurement committees and other personnel attached to institutions involved in coal-related transactions.
Officials said that, depending on evidence gathered during the ongoing inquiry, statements may also be obtained from former ministers if required.
The Commission has also received 28 complaints in connection with alleged irregularities in coal imports and related procurement processes.
President Anura Kumara Dissanayake on April 17 appointed a three-member Presidential Commission of Inquiry under the Special Presidential Commissions of Inquiry Act No. 07 of 1978 to probe alleged malpractice in coal imports and electricity generation since the inception of coal-based power generation up to April 16, 2026.
The Commission is chaired by Supreme Court Justice Gihan Kulatunga, with Court of Appeal Judge Aditya Patabendige and High Court Judge Sanjeewa Somaratne serving as members. Former State Ministry Secretary P.V. Bandulasena acts as Secretary to the Commission.
The inquiry covers alleged procurement irregularities, possible financial losses to the State, import of substandard coal, quality inspection failures, contractual breaches and operational issues in power generation, including whether corrective measures were taken where necessary.
It will also identify responsible political authorities, officials of Sri Lanka Coal Company (Private) Limited and suppliers, while recommending legal or administrative action and measures to prevent future lapses.
Meanwhile, the Committee on Public Enterprises (COPE) is also preparing to table its report on coal procurement in Parliament, with officials from relevant institutions having been summoned during its proceedings. COPE Chairman MP Dr. Nishantha Samaraweera said audit findings had also been considered, and any matters requiring further investigation would be referred to law enforcement and anti-corruption authorities.
News
TNA MP calls for complete repeal of PTA
Trincomalee District TNA MP Shanakiyan Rasamanickam has submitted a motion to Parliament calling for the immediate repeal of the Prevention of Terrorism Act (PTA), arguing that the controversial law has enabled arbitrary detention, torture and the targeting of minority communities for more than four decades.
In his motion, now published in the Addendum to the Order Book of Parliament, the MP urged the Government to repeal the Prevention of Terrorism Act, No. 48 of 1979, in its entirety and refrain from introducing any replacement legislation containing similar provisions.
Rasamanickam contended that the PTA had been used for over 40 years to facilitate prolonged arbitrary detention and to obtain false confessions through torture. He further alleged that the law had disproportionately affected minority communities and civil society groups.
The motion states that there is no justification for maintaining a permanent counter-terrorism law that grants sweeping powers to the authorities.
The TNA legislator argued that existing legal provisions were sufficient to address security threats, noting that terrorism-related offences could already be prosecuted under the Penal Code.
He also pointed out that the Government retained the power to declare a state of emergency when circumstances warranted extraordinary measures, rendering a permanent anti-terrorism framework unnecessary.
Accordingly, the motion calls on Parliament to resolve that the Government take immediate steps to abolish the PTA without replacing it with legislation containing comparable powers.
The Prevention of Terrorism Act, enacted in 1979, has long been the subject of criticism from human rights organisations, civil society groups and international bodies, which have raised concerns over provisions relating to detention without trial and safeguards against abuse.
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