India to Assist Sri Lanka in Setting up Manufacturing Zone

The Union Minister for Commerce & Industry and Textiles,

Anand Sharma with the Minister of Economic Development of

Sri Lanka, Basil Rajapaksa, at the inauguration of

“The India Show-Land of Limitless Opportunities”,

in Colombo on August 03, 2012. Photo © PIB

COLOMBO (NNN-PTI) -- India on Friday said it will provide assistance to Sri Lanka for setting up a manufacturing zone for producing engineering and auto component goods to help the neighbouring country improve exports.

"We have agreed to have investment-link manufacturing and exports (zone). India will assist is establishing a manufacturing and export zone in Sri Lanka for engineering and auto component", Commerce and Industry Minister Anand Sharma said while speaking at India Show being organised by CII.

The two countries, the Minister said, have also decided to set up a skill training institute at Trincomalee.

The manufacturing hub, Sharma hoped, would help Sri Lanka in exporting value added products to various countries including India.

"We are not seeking reciprocity. We will ensure that whatever Sri Lanka exports to India, comes without any difficulty," he said.

Both the sides have also agreed to set up a Joint Task Force to increase economic operation. The task force would submit its report in three months.

"We have also agreed that India and Sri Lanka will work together in establishing a pharmaceutical manufacturing hub in Sri Lanka and that is part of the mandate of the joint task force," Sharma said, adding a delegation of pharma industry will be visiting Sri Lanka in the next one month.

The Minister also underlined the need for increasing bilateral investments between the two countries.

"Indian companies are willing to invest here. You have port facilities...," he said adding Indian companies have proposed to invest about $ 5 billion.

Indian government will make available Line of Credit and other facilities to promote trade, he said.

Sharma said although the bilateral trade has touched $ 5 billion, "it is well below potential."

The two countries "should look at doubling this number by 2015 taking it to $ 10 billion," he added. -- NNN-PTI