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Sri Lanka: Time to take spice route

Gibbs

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Opinion piece

Sri Lanka: Time to take spice route - Free Press Journal

Last week, I visited the beautiful home of local businessman Thirukumar Nadesan in a part of Colombo-7 that is so reminiscent of Kolkata’s Alipore of yore. There are three facets of Nadesan that strike me as significant. First, he is a Jaffna Tamil now living in Colombo; second, he is an extremely devout Hindu, with a fully functioning puja room and even a goshala in his back garden; and finally, his wife Nirupama, a MP for the ruling SLFP, is a niece of President Mahinda Rajapaksa.

Nadesan, who values his religious and cultural identity, has, like many other Jaffna Tamils, patronised the Ramanathaswamy Temple in Rameshwaram, just across the Palk Strait. Each year Nadesan would make it a point to go on pilgrimage to Rameshwaram and then proceed to visit other temples in India. On January 10, 2012, while entering the temple for puja, he was set upon by a determined band of pro-LTTE activists, who assaulted him and chased him out of the shrine. With no assurance of personal protection forthcoming from the state government, Nadesan hasn’t been able to revisit the temple—although he has been to other temples in India.

As an Indian, I find this assault on Nadesan’s rights as a practising Hindu outrageous. What is even more surprising is that none of our defenders of India’s ‘secular’ inheritance has deemed this to be an attack on religious freedom. There have, for example, been attacks on Buddhist pilgrims from Sri Lanka, who use Chennai as a transit point for their journey to Bodh Gaya. And even Opposition leader Ranil Wickremsinghe faced mob fury when he visited Chennai three years ago.

Worst of all—and cricket-crazy Indians will understand this—for the past three years, Sri Lankan cricketers have been targets of an unofficial ban against them playing any matches in Chennai.

To those engaged in formulating ‘nuanced’ policy towards the neighbourhood, these incidents may seem trivial and small details of some ‘misunderstandings’ vis-à-vis a small neighbour. But imagine a situation if an extremist body in Sri Lanka were to impose such a ban on Mahendra Singh Dhoni’s team or if a group of Hindus from India visiting the Sita shrine near Kandy was set upon by a clutch of Sinhala chauvinists. Wouldn’t the shrill TV channels be demanding strong Indian retaliation to avenge national dishonour, as they often do when Indian fishermen are arrested for straying into Lanka’s territorial waters?

It is healthy for foreign policy to be subjected to domestic scrutiny. However, when the interest takes the form of ill-informed rhetoric and mob action, it is time to put correctives in place. For too long, India’s policy towards Sri Lanka has been viewed exclusively through the prism of the Tamil question and the 30-year civil war that, mercifully, came to an end in May 2009. Indian diplomacy has scarcely been able to rise above debates over the 13th Amendment and the tensions that mark relations between the Northern Provincial Council and the central government in Colombo. There is an impression that India is the reserve army of Sri Lanka’s Tamil minority in the North and East, an impression that translates into conviction with the Tamil National Alliance. The problem with this preoccupation with only one aspect of Sri Lanka’s national life is that many more important questions are left either unaddressed or de-prioritised.

Many Indians would, for example, be surprised to learn that nearly 70 per cent of the freight traffic handled by the bustling Colombo part is devoted to India’s imports and exports. India needs an efficient Colombo port just as Colombo port needs Indian custom. There is total inter-dependence. India will benefit from the further upgradation of facilities on the Colombo waterfront and Sri Lanka stands to benefit from India’s rapid economic growth.

Take another factoid. Tourism accounts for nearly 25 per cent of Sri Lanka’s GDP and contributes immeasurably to generating local employment. And, of the tourists, nearly 70 per cent are from India. Add to this the investment of Indian entrepreneurs (both big and small) in the infrastructure of tourism and we see another facet of the deep economic linkages that bind the two countries.

How much of this economic bonding was government-driven and how much was a function of market logic is difficult to ascertain. However, considering the fact that Sri Lanka cannot market its tea to India or that there are serious impediments to the island selling its world-famous pepper and cinnamon to India, there is an unavoidable conclusion. Sri Lanka and India have forged deep business links despite the babus. This is something for Prime Minister Narendra Modi to ponder over.

The one area where the government could have played a role, its intervention has been found wanting. Last year, the exhibition of Buddhist relics from Kapilavastu drew spectacular crowds in Sri Lanka. Much of these relics were sourced from the Indian Museum in Kolkata, which seems to have neither the imagination nor the inclination to display much of what it possesses. The Madhya Pradesh government, on the other hand, has been more forthcoming in forging links with Sri Lanka for Buddhist studies. However, the efforts have been patchy and there is need for a show of political will to drive the Buddhist heritage project.

I have been travelling to Sri Lanka from 1987, a time when the island was crippled by war. During my initial visits, I was fortunate to meet many of the political old-timers. Almost all of them had deep personal links with India, forged during the 1940s and 1950s. The new generation of the Sri Lankan elite don’t share those experiences because somewhere along the way the two countries went their separate ways.

It is time to re-forge those links not through politics but by blending heritage with trade and commerce. Indo-Sri Lanka relations are crying out for a strategic shift.

Swapan Dasgupta
 
Indo-Lankan relations are going to get the biggest boost of their life by 2015.

@Gibbs - You might find this information worth your time.

Right now the PM does not have the majority in Rajya Sabha. So he is still dependent on Jayalalitha for support in passing some legislations, though that dependence in itself is exponentially less than what Manmohan Singh had on Karunanidhi(DMK).

However, 5 state elections will be completed by December this year. So by next year, dependence on TN based parties would have been further reduced and quite massively because it looks like BJP is set to sweep all of them.
 
Indo-Lankan relations are going to get the biggest boost of their life by 2015.

@Gibbs - You might find this information worth your time.

Right now the PM does not have the majority in Rajya Sabha. So he is still dependent on Jayalalitha for support in passing some legislations, though that dependence in itself is exponentially less than what Manmohan Singh had on Karunanidhi(DMK).

However, 5 state elections will be completed by December this year. So by next year, dependence on TN based parties would have been further reduced and quite massively because it looks like BJP is set to sweep all of them.

This is quite true and this relation going towards fruitful results for both nations.
 
Indo-Lankan relations are going to get the biggest boost of their life by 2015.

@Gibbs - You might find this information worth your time.

Right now the PM does not have the majority in Rajya Sabha. So he is still dependent on Jayalalitha for support in passing some legislations, though that dependence in itself is exponentially less than what Manmohan Singh had on Karunanidhi(DMK).

However, 5 state elections will be completed by December this year. So by next year, dependence on TN based parties would have been further reduced and quite massively because it looks like BJP is set to sweep all of them.

Thats the best even for the reconciliation of SL Tamils and the rest.. Those people have suffered enough for the TN polity to use them as bargain tools all over again.. If the TN factor in Indo Lanka relations diminishes GOI will have a greater influence on pressuring the GOSL for the rightful actions on both reconciliation and devolution of political power to the periphery

Right now they are using the animosity of the TN polity viz a viz SL to hold back proper devolution.. As a scare factor among the majority
 
This is quite true and this relation going towards fruitful results for both nations.

The relation as you mentioned should beneficial to Sri Lanka as well as for India. Or else it has no value at all. We believe NaMo understands this.
 
The relation as you mentioned should beneficial to Sri Lanka as well as for India. Or else it has no value at all. We believe NaMo understands this.

Mutual profit is the key of any collaboration.
 
Mutual profit is the key of any collaboration.

But for the past India-Sri Lanka collaboration only India got benefited. This shouldn't happen again.
 
But for the past India-Sri Lanka collaboration only India got benefited. This shouldn't happen again.
Show me few example as i am unaware of the situation.
 
Mutual profit is the key of any collaboration.
But for the past India-Sri Lanka collaboration only India got benefited. This shouldn't happen again.
E.g: Indo sri lanka free trade agreement
Not only for India but it is valid for China too. In some recent occasions too, it is highlighted the fact of SL government's incompetency for strategic agreements which would have been used for mutual gain.
 
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E.g: Indo sri lanka free trade agreement
Not only for India but it is valid for China too. In some recent occasions too, it is highlighted the fact of SL government's incompetency for strategic agreements which would have been be used for mutual gain.

If it is a free trade agreement then doesn't that means it works both ways so how India used Sri Lanka ?

Still waiting for proof
 
If it is a free trade agreement then doesn't that means it works both ways so how India used Sri Lanka ?
Still waiting for proof
India-Sri Lanka Free Trade Agreement
Here the answer,

Indo – Lanka FTA not up to expectations since a decade

Ten years after the implementation of the Free Trade Agreement (FTA) between India and Sri Lanka which came into full existence in March 1, 2000, most heads of Sri Lankan chambers of commerce and industries say that its performance is not up to expectation even after a decade.

Majority of the imports from India were outside the FTA, whilst most of the investments into Sri Lanka were without direct links to the FTA, they stressed. The FTA primarily deals with the modalities of the duty free import of the goods manufactured in Sri Lanka which exempts specified goods imported under the agreement from import duty up to 100%.

There was a clear business opportunity for manufacturers from India to set up a unit in Sri Lanka so that the goods produced in Sri Lanka can be brought to India duty free availing the exemption provided in the FTA. But this area was not properly explored, they alleged.


Tissa Jayaweera, Chairman of International Chamber of Commerce Sri Lanka, told the Business Times that there are unresolved issues in the current Indo-Lanka FTA even after the 10-year duration. Almost 75 % of the imports from India were made outside the FTA. The Sri Lankan exports into India have also declined from around $550 million in 2007 to $ 334 million in 2009, whilst a majority of the investments into Sri Lanka have been made without direct links to the FTA. Whilst Indian goods have flooded the Sri Lankan market the access given to Sri Lankan goods is limited and there is no end to the long list of Non Tariff Barriers that confront these goods, he said.

He added that the delay in the issuing of the Certificate of Origin from Sri Lanka by the Department of Commerce, was a major concern for Indian when clearing goods. The Sri Lankan government should issue this certificate prior to the shipment, from Sri Lanka which arrives within a period of 24 hours, and the goods arrive before the documents. If the Sri Lankan government can work on issuing the Certificate of Origin prior to the shipment it would be of assistance to importers in India, he said.

He noted that India should re-examine the rules of origin criteria as some of these rules are too stringent which even can block Sri Lankan exports. Easing these rules will help Sri Lankan exporters penetrate the Indian jewellery, machinery, agricultural and fisheries markets. Newton Wickremasuriya, Chairman Ceylon National Chamber of Industries (CNCI) was of the view that there were many drawbacks in the implementation of the FTA during the past 10 years and no action has been taken to rectify it by both countries.

Sri Lanka’s industrial sector has not been benefited by the agreement although many people are talking about the entry into the vast Indian market. The Indian tariff and non tariff barriers was a major problem faced by Sri Lankan exporters. India has reduced its overall import tariffs on a number of items since the launch of the FTA. A classic example was the power cable exports from Sri Lanka to India which became a lucrative trade when India increased the duty on copper up to 40%. But when it was brought down to 5% the Sri Lankan power cable exports came to a grinding halt, he said.

Indo-Lanka bilateral trade would have grown even without the FTA as bulk of the trade is on items outside the FTA, he said. He noted that India has also not benefited by the FTA due to some checks and balances imposed by the Sri Lankan side, otherwise by now the local market would have been flooded with cheap Indian goods, he said.

When the Indian manufacturers here were exploiting both Sri Lanka and India by exporting Vanaspathi and Copper to India the country’s monitoring institutions including the Board of Investment (BOI) have failed to take any action against it. Therefore it is essential to strictly monitor the implementation of agreements such as FTA, he stressed. Sri Lanka should move fast to improve its exports to India otherwise it will lose another opportunity of entering this vast market, he concluded.

Expressing optimism on the outcome of the FTA, President of the National Chamber of Commerce of Sri Lanka Lal de Alwis pointed out that Sri Lankan exports to India have largely been new products where Sri Lanka did not traditionally have capacities. Therefore he said the FTA has created new export capacities in Sri Lanka that hitherto did not exist. It has brought precious foreign exchange to the country by helping create this potential.

The FTA has spurred bilateral investments by capitalizing on the opportunities generated by the FTA and availing of the comparative advantages both countries possess. However he noted that Sri Lanka needs to correct the issues exporters have been facing. “The Sri Lankan business community should adopt an aggressive attitude to face the challenges positively when entering the Indian market,” he said.

 
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