Amidst mounting protests against the proposed Economic and Technology Cooperation Agreement (ETCA) by local professionals and businessmen, Sri Lanka is to sign a Memorandum of Understanding (MoU) on partnership cooperation during Prime Minster Ranil Wickremesinghe’s forthcoming visit to India. The aim is to ensure speedy implementation and follow up in the identified development projects with [...]

The Sunday Times Sri Lanka

SL, India in economic partnership before ETCA

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Amidst mounting protests against the proposed Economic and Technology Cooperation Agreement (ETCA) by local professionals and businessmen, Sri Lanka is to sign a Memorandum of Understanding (MoU) on partnership cooperation during Prime Minster Ranil Wickremesinghe’s forthcoming visit to India.

The aim is to ensure speedy implementation and follow up in the identified development projects with Indian assistance in the South and East, a senior official of the Ministry of Development Strategies and International Trade told the Business Times.

Sri Lanka is expected to receive investment of more than US$ 2 billion in the next two to four years from India.

Lands in Trincomalee and Weligama have been identified for special industrial zones for Indian investors, he disclosed.

According to the proposed MoU between the two countries, a Liquefied Natural Gas (LNG) fired 500 MW capacity power plant as well as a LNG Terminal/Floating Storage Re-gasification Unit (FSRU) in Kerawalapitiya will be set up with Indian assistance through a joint venture.

International bids will be called to select suitable firms to carry out the consultancy work and construction process.

These details were brought to the notice of the Cabinet Committee on Economic Management (CCEM) recently.

An agreement will also be reached to set up a joint venture to develop the Upper Tank Farm in Trincomalee, while signing a land lease agreement for 50 years in favour of Lanka Indian Oil Corporation (LIOC) Ltd for the tank farm.

The CCEM has directed the Ministers of Development Strategies and International Trade and Petroleum Resources to submit a paper towards this end after consulting the Attorney General, an International Trade Ministry official said.

The other major investment projects included in the MoU are the development of Port, Petroleum Refinery and other industries in Trincomalee, Dambulla-Trincomalee Expressway, Mannar-Jaffna and Mannar-Trincomalee highways and to encourage Indian companies to invest in a Container Terminal in Colombo Port.

Meanwhile the 4th round of ETCA trade negotiations will take place in New Delhi this month, he disclosed.

The 3rd round of talks on ETCA ended in Colombo inconclusively on January 4-5.

India and Sri Lanka had initially planned to conclude the pact by the end of the last calendar year but couldn’t do so due to some nagging issues in services and rules of origin, he added.

New Delhi is eager to enter the services sector in Sri Lanka, but there are fears in the country that strong Indian companies could displace local businesses. (BS)

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