Indo-Sri Lanka Trade In Services: FTA II And Beyond

India and Sri Lanka are in the process of negotiating Comprehensive Economic Partnership Agreement. In this context, the study shows that since there has been an increase in services trade between the two countries, the inclusion of services in the agreement (CEPA) would give an impetus to trade. The study shows that there is scope for Indian investment in several sectors in Sri Lanka and also scope for mutual co-operation in sectors such as tourism and audio-visual and cultural services. Sri Lanka could gain from skill and technology transfer from India. It is perceived that FTA could play a more meaningful role in co-operation. Some of the key suggestions made in the study relate to Mutual Recognition Agreements, relaxation of the visa regime, reduction in telecommunication charges etc. An analysis of the developments in Indo-Sri Lanka trade in services since the signing of the Comprehensive Economic Partnership Agreement is studied. Also, the anomalies in the request approach have to be addressed through FTA. [Working Paper No. 145]