ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

India-Sri Lanka's Free Trade AgreementSubscribe to India-Sri Lanka's Free Trade Agreement

Sri Lankan Exports to India

Since the Indo-Sri Lanka Bilateral Trade Agreement came into existence in March 2000, Sri Lankan export to India has registered a sharp increase. A disaggregated analysis shows however, an unevenness which indicates the need for smoothening the trade process and regulations.

India-Sri Lanka Trade

The Free Trade Agreement between India and Sri Lanka, though in a positive direction, does not address the issue of transaction costs that emanates from the transacting environment. Analysing the characteristics of formal and informal trading between India and Sri Lanka the study shows that transaction costs in formal trading are higher than for informal trading and suggests that lowering transaction costs in formal trade could enhance trade between the two countries.

India-Sri Lanka Free Trade Pact

The impact of the agreement to remove trade barriers and tariff walls between India and Sri Lanka on Kerala requires careful consideration as the state's production of cash crops has a significant overlap with Sri Lanka's major exports.

Indo-Sri Lanka Free Trade Agreement

Prospects of bilateral trade between India and Sri Lanka seem to have been boosted by the Free Trade Agreement of 1998. The vast Indian consumer market could serve as an entry point for Sri Lankan exports as 'first movers' before other potential competitors. The perceived advantages of this claim will depend on the pace of tariff reforms in India and the necessary export surplus that Sri Lanka can generate.
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