Wasantha Mudalige, National Executive Member of the People’s Struggle Movement, has issued a stern warning about the potential implications of re-signing the Economic and Technology Cooperation Agreement (ETCA) with India, emphasizing its potential to undermine Sri Lanka’s labor market and workers’ rights.
Addressing a press conference in Colombo, Mudalige expressed alarm over reports that the government is in discussions with Indian Prime Minister Narendra Modi to revisit and finalize the ETCA, an agreement that has been a subject of controversy for years.
Liberalization of Services and Employment Risks
Mudalige explained that ETCA goes beyond traditional trade agreements, aiming to liberalize both goods and services between the two countries. He highlighted that one of the most concerning provisions is the opening of Sri Lanka’s labor market to Indian professionals.
“Right now, our laws prevent foreign workers from entering and working in Sri Lanka without proper regulation. However, under ETCA, these protections will be weakened or removed entirely. This could open the floodgates to a significant influx of Indian workers, particularly in sectors like healthcare, IT, and other specialized fields,” he said.
He cited India’s surplus of medical professionals as a pressing example.
“India has 500,000 doctors currently unemployed. If ETCA is signed, these unemployed professionals will have the opportunity to work in Sri Lanka, potentially displacing local doctors or driving down wages. This isn’t just speculation; it’s a very real risk,” he warned.
Impact on Sri Lankan Workers
Mudalige stressed that the issue is not with Indian workers themselves but with the implications for Sri Lankan labor rights:
“We have no issue with Indian workers or their struggles. They, too, are victims of unemployment and systemic issues. However, Sri Lanka has a history of workers’ rights that were hard-won over decades of struggle. It is unfair and dangerous to compromise those rights for the sake of an agreement that primarily benefits foreign interests.”
He pointed out that sectors such as healthcare, IT, and engineering—already facing challenges due to resource constraints—could be destabilized if the agreement allows a flood of foreign professionals to enter the market.
Criticism of Government Policies
Mudalige took aim at both the current National People’s Power (NPP) government and previous administrations, accusing them of prioritizing foreign relations over the welfare of Sri Lankan workers.
“We have always opposed Ranil Wickremesinghe’s government for its harmful deals with India, which have consistently eroded Sri Lanka’s economic sovereignty. Unfortunately, the NPP government, which once criticized these policies, now seems to be following the same path. Re-signing ETCA will only deepen our dependency and hurt our local workforce,” he said.
Long-Term Consequences of ETCA
Mudalige argued that ETCA, as it currently stands, disproportionately benefits India while leaving Sri Lanka vulnerable to exploitation. He pointed to previous agreements with India that failed to deliver promised benefits, citing the lack of safeguards for local industries and workers.
“This isn’t just about allowing foreign workers into the country; it’s about protecting the future of Sri Lankan industries. ETCA could also pave the way for outsourcing jobs in sectors like IT, where Indian companies might undercut local firms with cheaper labor costs,” he added.
Call for Transparency and Public Debate
Mudalige called for the government to hold a transparent and public discussion on the implications of ETCA before moving forward with the agreement.
“The people of this country have a right to know the terms of this deal and how it will affect their livelihoods. We cannot allow this agreement to be signed in secrecy or without the proper safeguards in place to protect Sri Lankan workers and industries.”
ETCA: A Controversial Past
The ETCA agreement has faced criticism since its inception during Ranil Wickremesinghe’s tenure. Opponents argue that it disproportionately benefits Indian interests and lacks sufficient protections for Sri Lankan workers and businesses. The proposed liberalization of services has been a particularly contentious issue, with critics fearing an influx of Indian professionals into the Sri Lankan labor market.
Mudalige concluded by urging the government to prioritize the welfare of its citizens over foreign agreements, stating:
“The future of our workforce and our economy depends on the decisions made today. The government must tread carefully and ensure that no agreement undermines the rights and livelihoods of Sri Lankan workers.”
His remarks have reignited public debate about ETCA, with many calling for greater scrutiny of its potential impact on the nation.
