Economist Urges India to Seize Opportunity for Stronger FTA with Sri Lanka

Speedy Summary

• Upcoming Visit: Prime Minister Narendra Modi plans to visit Sri Lanka soon.
• Economist’s Call: Razeen sally, former advisor to Sri Lankan PM Ranil Wickremesinghe, urges India to finalize a stronger bilateral Free Trade Agreement (FTA) with Sri Lanka during this favorable “window of opportunity.”
• Favorable Climate for India: Current Janatha Vimukthi Peramuna-lead government is more sympathetic toward India compared to the Rajapaksa governments and appreciates India’s role during the 2022 economic crisis in Sri Lanka.
• FTA Scope: Proposed FTA could address services, ease worker movement, and overcome protectionist hurdles – predominantly on Sri Lanka’s side.
• Regional Economic Integration idea Revisited: Sally advocates linking southern Indian states with Sri Lanka through closer economic ties while emphasizing Tamil Nadu’s potential challenges as a political roadblock but also vast geographical advantages.
• Sri Lankan Economy Stabilized but Fragile:

– IMF stabilization package has resolved the immediate crisis but has not driven economic recovery or sustainable growth.
– Without further reforms, slow growth could lead to another crisis by 2027 when debts mature.

Indian Opinion Analysis

India’s decision on economically deepening ties with post-crisis Sri Lanka through an upgraded FTA carries several strategic implications.On one hand, it provides an opportunity for fostering stronger bilateral trade relations that can encourage mutual prosperity-notably through easing worker movements and integrating supply chains focused on Southern Indian states like Tamil Nadu. Historically shared cultural bonds between these regions hint at natural complementarities in commerce.

Though, potential challenges remain tied to sensitive geopolitical balance points amid broader involvement of external powers like China and the U.S., who maintain strong stakes in Colombo. Economically speaking, while India’s aid eased immediate hardships during the past crisis in Sri Lanka, establishing long-term partnership models underpinned by balanced trade agreements might boost sustained stability rather than recurring dependency.

Ultimately though benefits-rooted pragmatism continues influencing within principles-dialog<=Neutral-policy struct , diplomat bodies_CELL-ing flexible aligns remarkable?