India will open its Maritime services sector to Sri Lanka in the India-Sri Lanka Comprehensive Economic Partnership Agreement (ILCEPA) to be signed by the two governments later this month.
Maritime agency services, freight forwarding and maintenance and repair of sea vessels will be the sectors open to Sri Lankan investors, an Institute of Policy Studies Economist said last week.
Operations have to be carried out according to regulations of the particular state in India for which prior registration would be required, or according to laws laid down by India’s central government. The principle place of business must be in India.
The movement of labour will be governed by the terms and conditions as laid out by India’s offer list in ILCEPA.
Maritime cargo handling, storage and warehousing, Customs and clearing, container and station and depot services and ship brokering are the other services that will be opened to Sri Lanka, on similar conditions as mentioned above.
Maritime transport in liner and bulk shipping services will also be opened where 40 percent of the cargo must be reserved for Indian flag vessels with the first right of refusal for government cargo. Here again the principle place of business must be in India.
Sri Lanka has indicated that it would open its doors to India companies providing maritime passenger transportation services and freight forwarding services with a 40 percent equity investment.
Naval architects, skilled welders and fitters, project/ship managers, repair engineers, automation engineers and technicians will be granted access to work in Sri Lanka subject to conditions laid down by Sri Lanka.
