Blue economy emerges as anchor for Indo-Lanka collaboration: Dr. Bana

Sri Lanka’s efforts to rebuild its economy are opening new avenues for collaboration with India, with the blue economy identified as a high-potential area for mutual benefit, the Indo-Sri Lanka Chamber of Commerce and Industry (ISCCI) said.

According to ISCCI Vice Chairman Dr. Naresh Bana, it is important to leverage the expansive coastlines to unlock the economic and ecological benefits for both nations.

“The blue economy presents significant collaborative potential for India and Sri Lanka,” Dr. Bana said while outlining the key areas of cooperation such as marine domain awareness, maritime security, fisheries and aquaculture, offshore energy, including wind farms, maritime trade and connectivity, tourism and marina development and research and innovation.

Noting that such initiatives could create new economic opportunities while fostering environmental sustainability, Dr. Bana emphasised the need for effective execution and robust data to guide investment decisions.

Beyond the blue economy, the Indian investors are closely monitoring Sri Lanka’s broader economic landscape. While bilateral trade reached US $ 5 billion in 2023, investments in sectors such as tourism remain cautious. 

“The Indian investors, like their counterparts elsewhere, rely on credible data, projections and business prudence,” Dr. Bana noted.

Sri Lanka’s recent economic reforms, including the introduction of municipal bonds, real estate investment trusts (REITs) and SME listings, aim to diversify investment instruments and attract foreign capital. 

“These initiatives, if executed effectively, could accelerate economic growth,” Dr. Bana added, pointing to the importance of transparent and consistent financial data.

India’s established presence in Sri Lanka’s economy includes major players such as Tata Group, Bajaj, Airtel and Indian Oil, which operate across telecommunications, automotive, financial services and energy sectors. ITC Hotels recently entered the tourism and leisure market, further strengthening the ties between the two nations.

The forthcoming Economic and Technology Cooperation Agreement (ETCA) is also expected to enhance trade and economic partnerships, potentially fostering greater cross-border synergy.

As Sri Lanka rebuilds, collaboration across diverse sectors, from marine resources to infrastructure and trade, will be pivotal in sustaining its recovery. With India’s ‘Neighbourhood First’ policy, providing critical support through development aid, credit lines and infrastructure investments, the Indo-Lankan partnership is well-positioned to drive regional prosperity.