More discussions on CEPA necessary – Cabraal

by Devan Daniel

Central Bank Governor Ajith Nivard Cabraal said that it was the government’s priority to ensure that the private sector was comfortable with the Comprehensive Economic Partnership with India.

"More discussions should take place if the discussions that have already taken place are not enough," he said.

Speaking at the first Annual General Meeting of the Indo Lanka Chamber of Commerce and Industry (ILCCI) last Friday, Cabraal said that it was only natural that some would look at CEPA suspiciously and harbor apprehensions.

Last week, several industrialists opposed the government’s decision to sign a framework document on CEPA with the Indian Prime Minister on the sidelines of the SAARC Summit because a document outlaying its contents was not made available to them.

"The validity of these concerns must be looked into and things will have to be worked out," Cabraal said.

The incumbent President of the ILCCI, Mano Selvanathan, said that some of that some of the industrialists who opposed CEPA overstretched their objections.

"Some of their concerns may be legitimate while some of it may be overstretched but they have to be taken seriously," he said.

He said he was confident that CEPA included a conflict resolution mechanism where each year the agreement would be reviewed to iron-out any problems.

"There will be problems with CEPA but they will not be problems that cannot be revoked. I have not seen the agreement in writing, but I am sure there is a mechanism in place to rectify problems."

While India is in negotiations with the US, EU and ASEAN over free trade agreements he said that Sri Lanka should look at signing an agreement in a more positive light.

"Americans complain that cheap goods from China flood their markets but the savings that have been generated as a resulted amounted to US$ 1 trillion," he said.

Out of the chamber’s 95 members, members from Indian companies number around 30 and Selvanathan said that the ILCCI would make an effort to increase the membership from the Indian side as it seemed to be a one-sided affair with Sri Lanka dominating the membership.