07 August 2015
The long-delayed signing of the Comprehensive Economic Partnership
Agreement (CEPA) between India and Sri Lanka will be actively opposed
by local entrepreneurs, the Chamber of Young Lankan Entrepreneurs
(COYLE) said on Thursday.
The group further demanded the tightening of regulations on foreign
investment. The government pledged earlier this year to reduce barriers in
order to encourage FDI, but COYLE urged the government to take steps to
ensure the protection of Sri Lankan entrepreneurs and all local Small and
Medium Enterprises (SMEs), the Daily FT reported.
An economist from Singapore's Lee Kuan Yew School of Public Policy said in
2012 Sri Lanka has been withholding trade from India, most notably the
neighbouring Southern states, "for a combination of chauvinistic reasons and
defensive economic reasons of some [local] business."
See: Chauvinism in Sri Lanka's trade policies - international economist (24
December 2012)
Sinhala federation, the FNO, said the intention behind the bridge was
to annex Sri Lanka to India.
CEPAs implementation would also see Sri Lankan firms face competition
from Indian companies, looking to expand into the market.
After demonstrations in 2010, just before President Rajapaksa visited India,
he met with protestors and his office released a statement vowing:
The government will not enter into any pact or agreement that is
inimical to its people and economic interests."
Comments made by other members of COYLE during the event on
Thursday demonstrate the deep-running fear of opening up the economy to
India.
Another member of the collective and chairman of KIK Lanka, Lalith
Kahatapitiya, also criticised the recent reports of the impending signing of
the deal, warning that riots would ensue if Sri Lankas unemployment rate
increased due to the agreement.
The unemployment of engineers in India is close to half a million. When
we have 6,000 to 15,000 engineers graduating from our universities and
we dont provide them with jobs, there will be youth unrest. If there are no
employment opportunities for Sri Lankan youths, they will start rioting, he
said.
The panel at COYLEs media briefing also urged the introduction of
restrictions on foreign ownership in all businesses to a maximum of 49%,
other than the BOI Export Oriented Industries within the Free Trade Zones.
The group further said the retail trade should be reserved for Sri Lankan
entrepreneurs only and foreigners cannot be allowed to enter this trade.
COYLE said any bilateral economic deals with other countries should only
be agreed once approved by parliament. Responding to a reporter who
asked whether the organisation was against foreigners investing in Sri
Lanka, chairman of Epic Technology Group Nayana Dehigama said they
were in favour, but that the government should take measures to safeguard
local entrepreneurs.
There is a driving force behind this country, which is the entrepreneur
community. Think about that. All we ask is to not give them everything on
a platter. Think about the local entrepreneur community also. For example,
what would happen if an Indian billion dollar company started operating
here without any taxes? What would happen to Sri Lankan companies in
the same trade?
They could dump their prices here over a couple of years until such time
they find that no Sri Lankan industry is sustained. And then from there
they will take it up.
That is why we say protect Sri Lankan entrepreneurs by way of
implementing existing policies. There are already policies in place,
implemented by different governments. We need more, we need protection
and there are loopholes.
Please address them. Do something to close these loopholes, he said.
As the Tamil Guardian said in 2012,
"In other words, whilst Sri Lanka wants Indian capital investment,
it does not want Indian trade, Indian traders or indeed Indian
advice on constitutional reform!"
See related articles below:
Helping diaspora invest in North should be prioritised says Jaffna Business Forum (05
August 2015)
India still awaiting Sri Lanka's approval for rail link (03 August 2015)
Trade will improve if Tamil issue solved India (27 July 2014)
India working on project to build road to Sri Lanka with ADB support (09 July 2015)
No discussions held on India's road-rail link submission at ADB says Sri Lanka (20
June 2015)
UNHCR calls for Sri Lanka to renew ferry service to India to aid Tamil
refugee resettlement (14 May 2015)
India keen to restart ferry service between Tamil Nadu and North-East (11
March 2015)
India urges political reconciliation of Tamils in Sri Lanka (19 January 2015)
NPC resolution demands transport links between North-East and India (19 February
2014)
The big bad CEPA (24 August 2012)
Remain 'vigilant' of CEPA and 'Mighty India' (05 August 2012)
Anyone but the Indians (29 April 2012)
Bilateral relations? (10 April 2012)
Posted by Thavam