Former Deputy Leader of the United National Party, MP Ravi Karunanayake, has questioned why Sri Lanka continues to stagnate while India rapidly advances, despite 25 years of bilateral trade cooperation.
Raising the issue in Parliament under Standing Order 27(2), he noted that although the Indo-Sri Lanka Free Trade Agreement came into effect 25 years ago—and both countries completed tariff liberalization by 2008—the trade relationship has become severely imbalanced in India’s favour.
Karunanayake highlighted that Sri Lanka’s exports to India amounted to only US$ 884 million last year, while imports from India reached US$ 3.76 billion, leaving Sri Lanka at a significant disadvantage.
He stated that the existing FTA has become outdated and that non-tariff barriers continue to prevent Sri Lanka from realizing the full benefits of trade. According to him, the proposed Economic and Technological Cooperation Agreement (ETCA) is the way forward. He also recalled India’s request for the appointment of a chief negotiator to resume ETCA discussions.
“We cannot ignore global realities. India is on course to become the world’s third-largest economy by 2027. As this transformation takes place, Sri Lanka must position itself as a partner, influencer, and facilitator within India’s supply chains, trade corridors, and service integration,” he said.
Karunanayake urged the government to clarify its stance on the matter.
In response, Trade Minister Wasantha Samarasinghe said that he would present his reply within a week.
