India to invest $2 billion in Sri Lanka over 3-4 years [Economy, IR]
- India will invest $2 billion in Sri Lanka in the next three-four years.
- The Economic and Technological Cooperation Agreement (ETCA) initiative follows unfruitful negotiations, spanning nearly a decade, on a Comprehensive Economic Partnership Agreement (CEPA) between the neighbours. India and Sri Lanka already have a Free Trade Agreement since 1998.
- Both New Delhi and Colombo are keen on signing the ETCA, though there is considerable opposition to it within Sri Lanka, coming both from a section of medical and IT professionals, and from trade unions.
- The passing of the Goods and Services Tax Bill made India one whole market.