The Commerce Secretary of India told Sri Lanka that it should open its services sector in a phased-out manner with proper regulations in place.
Commerce Secretary Gopal K. Pillai made this observation at a seminar held yesterday on India-Sri Lanka Comprehensive Partnership Agreement (ILCEPA): Opportunities and Challenges.
He said that internal regulations of India’s states in its federal system of government did not create a level playing field either.
"Sri Lanka has to study the potentials, opportunities and challenges ILCEPA would bring and need to study what changes to its legislature would be required to be amended in order to benefit from ILCEPA," he said.
"I have struggled for many years in India, going through line by line and negotiating many Acts of several ministries and local governments. Sri Lanka must take this challenge in a large way," he urged.
The ILCEPA is ready to be signed by the two governments at SAARC Summit late this month.
"Sri Lanka has to look at ILCEPA from the point of view that India is a huge market (With over a billion people) to be exploited," Pillai said.
Minister of Export Development and External Trade Prof G. L. Peiris said that the regulatory framework was not adequate as far as the services sector was concerned.
"It’s a timely opportunity that legislative norms are put into place and this is an urgent priority of the government," he said.
Prof Peiris said that proper policy initiatives will also be put into effect so that the rural economy enjoyed the fruits of ILCEPA.
He said that the state should take an active rule and not assume that dividends would treacle down across to rural, gender and livelihoods in an equitable manner.
"The government will ensure that rural communities become full participants and that the benefits of liberalising trade will not be an elitist phenomenon."
Mahen Dayananda, Chairman, Ceylon Chamber of Commerce and Nawaz Rajabdeen, President, Federation of Chambers of Commerce and Industry of Sri Lanka were optimistic about ILCEPA and presented compelling cases as to why ILCEPA would benefit the country.
The two chambers have been involved throughout the whole process ably assisted by the Institute of Policy Studies.
Professional services that do not have adequate regulations in place have not been included in ILCEPA.
India had never insisted on reciprocity and the ILCEPA drafts that were presented at the seminar testified to that fact.
However, the agreement which will be signed will not be the end. A technical committee would review its progress and monitor the problems every six months while a ministerial level review will be held once a year.
Rajabdeen said that apprehensions of the services sector could be understood and said that ILCEPA had necessary provisions to prevent any harm.
Dayananda said the government had taken into account the views of all stakeholders and not glossed over the concerns raised by the private sector during the consultative process.
