COLOMBO, May 18- Indian companies have invested nearly US$1 billion in Sri Lanka since 2003 and this figure could rise above US$2 billion in the next five years, said Indian envoy to Colombo, Ashok K Kantha (photo).
With investment inflows of US$160 million in 2012, close to US$2 billion worth of FDI have been committed by Indian companies for the next five years, Press Trust of India (PTI) quoted Ashok as saying.
Addressing a trade gathering here on Thursday, Kantha highlighted that in 2011-12, India’s imports from Sri Lanka went up by almost 45 per cent to cross US$720 million, making Sri Lanka the largest source of merchandise from the South Asian region for India.
This was a big jump from the US$45 million imports in 2000-01, when Sri Lanka occupied 4th place as an import source for India in the region.
Sri Lanka’s exports to India has multiplied by over 16 times in this period, while India’s exports to Sri Lanka has gone up by less than 7 times.
“There was thus no doubt that the FTA has brought significant benefits to both sides, but more to Sri Lanka. A number of top Indian companies have displayed high interest in Sri Lanka’s sectors such as infrastructure, manufacturing, services and construction,” Ashok said.
Air connectivity has gone up manifold with about 120 flights a week between Colombo and eight destinations in India, with about one-fifth of tourist arrivals in Sri Lanka from India.
-BERNAMA
