With a USD 3.7 billion import gap in India’s favour, Ravi Karunanayake says Sri Lanka’s 25-year-old FTA is outdated, unequal and urgently needs replacement through a new ETCA deal.
National Democratic Front MP Ravi Karunanayake has warned Parliament that although Indo-Lanka bilateral trade has expanded massively over the past 25 years, Sri Lanka has become the clear loser in the equation, with a widening trade deficit heavily favouring India. Speaking under Standing Order 27 (2), he reminded the House that the Indo-Lanka Free Trade Agreement (FTA) came into force in 2000 and both countries completed tariff liberalisation by 2008, yet the expected benefits have not materialised for Sri Lanka. He revealed that Sri Lanka exported only USD 884 million worth of goods to India last year, while imports from India surged to USD 3.76 billion, creating an alarming imbalance.
Karunanayake said the FTA is now outdated, and non-tariff barriers continue to block Sri Lankan products from entering the Indian market. He argued that the solution lies in finalising the long-delayed Economic and Technology Cooperation Agreement, pointing out that India has already requested the appointment of a chief negotiator to restart talks. He emphasised that Sri Lanka cannot afford to ignore India’s rapid economic rise, with the country set to become the world’s third largest economy by 2027. According to him, Sri Lanka must position itself as a strategic partner in India’s supply-chain expansion, logistics networks and services sector integration, instead of remaining a passive buyer of Indian goods.
Karunanayake asked the government to clearly state its position on ETCA and future trade policy. Trade Minister Wasantha Samarasinghe said he would respond in one week.
