Sri Lanka–India Integration Demands Political Will & Institutional Reform 📈

A high-powered panel at the _India Calling_ forum emphasized moving beyond traditional trade to deep economic integration through supply chains, services, and investments. • Key Structural & Political Priorities: • Need for political champions, research-backed strategy, and negotiating talent to push second-generation FTAs (ETCA). • Overcoming institutional silos, vested interests, and five-year political cycle disruptions to build policy continuity. • Elevating public sector remuneration to attract top expertise and retain institutional memory. • Trade & Currency Realignment: • Calls to establish a direct INR–LKR settlement mechanism to bypass US Dollar intermediate conversions, lowering transaction costs and easing foreign exchange pressure. • Transitioning from "Made in Sri Lanka" vs "Made in India" to joint production networks targeting broader regional markets (e.g., BIMSTEC, Indian Ocean). • Sectoral & Economic Impact: • Upgrading trade frameworks benefits key growth areas like tea, apparel & textiles, logistics, renewable energy, tourism, and digital services. • Historical Indo-Lanka FTA drove Sri Lankan exports from $50M to $550M within 5 years, highlighting the potential for current integration effort.