Facilitating Trade between India and Sri Lanka

Research team

Janaka Wijayasiri
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Suwendrani Jayaratne


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Published Year

March 2016


US$ 15 (for hardcopy)

Sri Lanka and India have duty-free access to each other’s markets through the India-Sri Lanka Free Trade Agreement, except for those items under the negative list and quota restrictions.  Nevertheless, the utilization of the Agreement by both Sri Lankan and Indian traders has been limited in recent years. Given the significance of improving bilateral trade with India, this study examines the main trade facilitation related issues traders face when importing and exporting under the India-Sri Lanka Free Trade Agreement. This study aims at identifying these issues and potential means of improving the identified areas through key informant interviews carried out among 20 stakeholders including export and import companies and key trade related institutions in Sri Lanka. The study finds that the rejection of products entitled for concessions, non-acceptance of Sri Lankan standard certification, excessive time taken for product testing, complexity and difficulties in obtaining information, and lack of efficient border controls and coordination are some of the key barriers at the border in trading with India. Towards addressing these issues, the study recommends educating traders and customs officials of goods eligible for concessions, facilitating testing/certification, streamlining customs procedures, establishing a help/information desk and incorporating trade facilitation as a key component in a future negotiated agreement with India.

Media Highlights

Daily FT,8thApril 2016           [Article PDF Format 255 KB]

Daily Mirror,8thApril 2016    [Article PDF Format 338KB ]


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