Indian, SL premiers hold discussion on mitigating trade balance

Pic by Kithsiri De Mel

By Sandun A Jayasekera

Prime Minister Mahinda Rajapaksa and Indian Premier Narendra Modi discussed the possibilities of mitigating the trade balance between Sri Lanka and India, that now remains highly in favour of India, during their bilateral summit held in late last week through a video link, Money, Capital Market and State Enterprises Reforms State Minister Ajith Nivard Cabraal said yesterday.   

Minister Cabraal told the media responding to a journalist, that Sri Lanka would enter into an agreement with the Reserve Bank of India through a Bilateral Currency Swap to obtain US$ 400 million as a financing facility to meet short-term International liquidity requirements.   

The two leaders discussed ways and means of further improving the two- way trade and bridge the gap that remained in respect of Sri Lanka’s exports and imports to and from India, Minister Cabraal said

The two leaders discussed ways and means of further improving the two- way trade and bridge the gap that remained in respect of Sri Lanka’s exports and imports to and from India, Minister Cabraal said.  

Minister Cabraal in response to Daily Mirror said that the two Prime Ministers did not pay attention to the development of Eastern Container Terminal as a joint venture between India and Sri Lanka or a proposed reclaiming of the Trincomalee oil tank farm leased out to Indian Oil Company (IOC) on a 30m year lease agreement by the Ranil Wickremesinghe government in 2003.   

Fisheries Minister Douglas Devananda expressed hope on finding a sustainable solution sooner rather than later to the issue of poaching marine resources of the Northern Sri Lanka waters by the Tamil Nadu fishermen following the talks between the two leaders.  

“Yes, it is an unresolved and prolonged issue between the two countries. The two Prime Minister discussed problem in detail and a joint committee to address this issue  to find a permanent solution will be appointed shortly. I am confident that the issue of trespassing into Sri Lanka waters by South India fishermen will be resolved pretty soon following an agreement reached between the two Prime Ministers,” Minister Devananda stressed.   
He admitted that despite continued talks between the two countries on political leadership level and official level held in the last few decades, the issue remained unsolved and the South India fishermen continued to plunder marine resources of Northern Sri Lanka seas.  .

He admitted that despite continued talks between the two countries, the issue remained unsolved and the South India fishermen continued to plunder marine resources of Northern Sri Lanka seas

Mass Media Minister and Government spokesman, Keheliya Rambukwella added that bilateral talks had not brought any positive outcome to the plundering of Sri Lanka’s fisheries resources because of the high handed action of South Indian fishermen which was backed by the political higher ups of Tamil Nadu.   

“I can remember that even late Minister Gamini Dissanayaka once attempted to resolve this issue and held talks with New Delhi. I was a member of that delegation but the problem still remains unresolved,” Minister Rambukwella added.