India and Sri Lanka have a long and complex history of trade and economic relations, which can be traced back to ancient times. In recent years, the two countries have made significant efforts to strengthen their economic ties, and the trade relationship between India and Sri Lanka has grown significantly.
Historically, India and Sri Lanka have had a close economic relationship, with India serving as a major trading partner for Sri Lanka. The two countries have shared a common cultural and linguistic heritage, and have long been connected through trade and commerce. In modern times, India has become an important economic partner for Sri Lanka, with a number of bilateral trade agreements in place to facilitate trade and investment between the two countries.
In recent years, the trade relationship between India and Sri Lanka has grown significantly, with the two countries implementing a number of initiatives to enhance trade and economic cooperation. In 2000, the two countries signed a Free Trade Agreement (FTA), which has helped to increase the flow of goods and services between the two countries. Under the FTA, both countries have benefited from increased access to each other's markets, as well as reduced tariffs and other trade barriers.
In addition to the FTA, India and Sri Lanka have also signed a number of other trade agreements, including a Comprehensive Economic Partnership Agreement (CEPA) in 2010, which has helped to further boost trade and investment between the two countries. The CEPA has helped to increase the flow of goods and services between India and Sri Lanka, and has also facilitated the movement of people and capital between the two countries.
In recent years, India has become an increasingly important economic partner for Sri Lanka, with Indian companies investing in a number of sectors in the country, including infrastructure, energy, and manufacturing. India is also a major source of tourism for Sri Lanka, with a significant number of Indian tourists visiting the country each year.
Overall, the trade relationship between India and Sri Lanka has grown significantly in recent years, and the two countries have made significant efforts to enhance economic cooperation and boost trade and investment. The FTA and CEPA have played a key role in this process, and have helped to increase the flow of goods and services between the two countries, as well as facilitate the movement of people and capital. As a result, India and Sri Lanka have become increasingly interconnected, and their economic relationship is likely to continue to grow in the future.
