📈 India’s Growth Drives Imperative for Sri Lankan Economic Reforms

• Strategic Alignment: Leaders and strategic thinkers at the Lanka India Business Association forum stressed that Sri Lanka must complete structural reforms to integrate into India's expanding supply chains, industrial partnerships, and technology networks. • FDI & Trade Landscape: India accounted for >50% of Sri Lanka’s inward FDI last year, backed by US$ 4.1 Bn in crisis assistance. However, high energy costs and unfair procurement practices remain major deterrents for foreign investors. • Proposed JETRO Industrial Corridor: A Japanese-proposed export corridor targeting electronics, mineral products, and rubber could boost Sri Lanka’s GDP by 9.3% by 2030 (and India’s by 1.28%) if key structural bottlenecks are solved. • Key Policy & Regulatory Reforms Needed: - Reducing minimum domestic value-addition requirements under ISFTA rules of origin from 35% to 25%. - Cutting process-level compliance barriers and lowering energy tariffs. - Modernizing public procurement to foster transparency and attract FDI. • Technology & Regional Integration: Leveraging initiatives like India's NASSCOM Disha program to mentor tech entrepreneurs in ICT/BPM and startups, using regional proximity as a core economic driver.