Sri Lanka must urgently draw lessons from the recently concluded UK–India Free Trade Agreement (FTA) to revitalise its trade and investment ties with India, the Indo-Lanka Chamber of Commerce and Industry said, calling for the swift implementation of a similar bilateral pact.
Citing the UK–India FTA, which is projected to add £4.8 billion annually to the British economy while opening doors for deeper market access and investments between the two countries, the chamber said Sri Lanka stands to gain even more due to its geographic proximity and existing ties with India.
“This is a powerful example of what can be achieved through a well-structured bilateral agreement. Sri Lanka is far better positioned geographically than the UK to engage with India. We share close cultural, historical, and economic ties, and India remains our largest trading partner,” the chamber said.
The chamber stressed that the long-pending Economic and Technology Cooperation Agreement (ETCA) with India could unlock similar benefits for Sri Lanka, including preferential access to Indian markets, investment inflows, enhanced regional value chain participation, and much-needed job creation, elements that would directly aid the island’s post-crisis economic recovery.
“India is not just a strategic partner – it is our immediate neighbour and one of the world’s fastest-growing economies. As nations like the UK begin to see tangible benefits from deeper engagement with India through instruments such as FTAs, the Indo-Lanka Chamber of Commerce & Industry firmly encourages Sri Lanka to chart a similar course,” the Chamber noted.
The chamber’s call comes at a time when progress on the ETCA has been stalled for years amid domestic political sensitivities. Despite resistance, the agreement has long been viewed by trade experts and sections of the private sector as a strategic extension of the existing Indo-Sri Lanka Free Trade Agreement (ISFTA), with the potential to reposition Sri Lanka more firmly within regional economic frameworks.