Sri Lankan SMEs have issued a siren call to their Indian counterparts for sustainable cross-border Joint Ventures on July 9.
The invitation, issued via the online global leadership platform ‘Indo Sri Lanka International Trade, Investment, Technology Transfer Cooperation’ on July 9 conducted by no less than the Confederation of Indian Micro, Small and Medium Enterprises, called Indian SME investors to partner in six frontline segments in Sri Lankan on Joint Venture- metal, food processing, coconuts, tea and rubber and plastic.
Sri Lanka is seeking new technology and machinery from India to revive Sri Lanka’s sick industries. Metal industries, food processing, coconut, plastic and rubber and value addition for tea are high potential sectors for partnership for Indian investors.
Members of Confederation of Indian Micro, Small and Medium Enterprises (CIMSME) can join COSMI in this.
Prime Minister Mahinda Rajapakse has endorsed Public Private Partnerships to advance SMEs” said COSMI Founder President Nawaz Rajabdeen on July 9.
Representing Lankan SMEs at this pioneering global leadership session by India’s CIMSME titled “Indo Sri Lanka International Trade, Investment, Technology Transfer Cooperation” Rajabdeen also voiced that many women entrepreneurs are not coming forward to register their SMEs.
“COSMI has requested the government to ask the women entrepreneurs to come forward and register so that they can avail of a host of facilities including access to finance” said Rajabdeen.
The Rules of Origin (ROO) ensures the goods are wholly produced from the country of export. In case goods are not under ROO criteria, ISFTA requires a combination of Domestic Value Addition (DVA) and Change of Tariff Heading (CTH).
Value Addition in exporting country should not be less than 35% of freight on board (FOB) value of the finished product. Failing to show this results in that product removed from ISFTA and loses benefits of it” said Rajabdeen.
India is Sri Lanka’s fourth-largest export destination. 4400 product lines have been given to Sri Lanka tariff-free by India under Free Trade Agreement. 65% of products exported from India to Sri Lanka comes in out of ISFTA.
“Sri Lankan exports to India have increased substantially in the past 18 years since 2000 –the year Indo-Sri Lanka FTA came into force. In 2019, bilateral trade between India and Sri Lanka totaled to US $ 4.59 billion. Exports from India to Sri Lanka surged from US $600 million in 2001 to $4495 million in 2018.