India seeks customs duty concessions from Sri Lanka

India is negotiating for customs duty concessions on various goods, including cars, commercial vehicles, and machinery, from Sri Lanka as part of a comprehensive free trade agreement (FTA) currently under discussion, an official said.

Further, India has requested easier visa norms to facilitate the entry of professionals from the country, the official added. 

The 14th round of talks between senior officials from India and Sri Lanka recently concluded in Colombo, addressing issues such as rules of origin, goods, services, and technical barriers to trade.

Conversely, Sri Lanka has sought the removal of a quota on apparel exports to India and duty concessions on tea and certain agricultural commodities. With elections announced in Sri Lanka, the next round of negotiations will occur post-elections.

Both nations have already implemented a free trade agreement in goods and are now working to expand the pact to include more goods and services. The India-Sri Lanka Free Trade Agreement (ISFTA), which came into force in March 2000, has enhanced economic relations by reducing tariffs on a wide range of goods.

While the original ISFTA focused solely on goods, ongoing negotiations aim to expand it into a Comprehensive Economic Partnership Agreement (CEPA), encompassing services, investment, and other economic cooperation areas. Currently, under the FTA, India permits limited imports of garments from Sri Lanka with a 50 percent tariff concession for up to 8 million pieces annually, provided 6 million of these use Indian fabric. 

In addition, India offers a 50 percent tariff concession on up to 15 million kg of tea from Sri Lanka each year.