TAs with India and China: Potential for Sri Lanka

Abstract

Sri Lanka has various levels of trade agreements (TAs) with both India and China. A new TA with China was mooted in 2014 and the appetite for that continues in the new presidency and policy context of 2015. While statistics suggested a high potential for the TA with India, in practice it has not generated a sustained growth in exports. The TA with China, therefore, needs to examine for the practical potential as well. This Insight suggests that Sri Lanka’s apparel and tea have the largest practical potential in a TA with China.