Monday 11 July 2011 Cinnamon Grand, Colombo, Sri Lanka

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INDO SRI LANKA TRADE RELATIONS AND EFFECT OF ILFTA Nihal de Silva, Senior Consultant, LMRB. Monday 11 July 2011 Cinnamon Grand, Colombo, Sri Lanka. Introduction. - PowerPoint PPT Presentation

Text of Monday 11 July 2011 Cinnamon Grand, Colombo, Sri Lanka

Slide 1

Monday 11 July 2011

Cinnamon Grand, Colombo, Sri Lanka


IntroductionOne of the important landmarks in the relationship between Sri Lanka and India has been the signing of the Indo-Sri Lanka Free Trade Agreement on 28th December 1998 and its implementation since 1st March 2000.

The dramatic increase in trade which followed the implementation of the FTA has in recent years experienced a downturn. The current study looks at the trend in trade between the two countries, obtaining the view of importers and exporters on the reasons for trade with India and problems faced, as well as suggestions for improvementSurvey ObjectivesThe purpose of the study was to find out to what extent the larger country acted as a locomotive for the smaller neighbouring island economy or whether the larger economy has dominated the smaller one.

More specifically, it focused on organizations engaged in trade between India and Sri Lanka in respect of selected products having high growth potential, not included in the negative list for trade, to arrive at the degree and nature of various kinds of tariff concessions to Sri Lankan traders after ILFTA, and whether the outcomes have been positive or otherwise. Research DesignDesk Research To obtain background information on the operation of the ILFTA

Quantitative Field Survey (face-to-face interviews using semi-structured questionnaire)To obtain views of stakeholders

MethodologyTarget Group: Consisted of organizations engaged in trade between India and Sri Lanka, in product categories not included in the negative list

Development of databaseThe database of organizations was generated from a multitude of sources, such as directories of The Export Development Board, The National Chamber of Commerce and The Ceylon Chamber of Commerce.

Exporters20 Importers40 Clearing agents 5Business Associations 6(The Ceylon Chamber of Commerce, The National Chamber of Exporters, Institute of Policy Studies, Department of Commerce, Sri Lanka Tea Board, Textile Quality Board)

Orientation and Briefing

A team of experienced English interviewers were briefed by LMRB Researchers on various aspects of the survey, including its purpose as well as details of the FTA. The questionnaire provided by RIS was used as the measuring instrument for the survey. Fieldwork was conducted between the period 1st November 2010 and 28th January 2011.

Face-to-face interviews

In each of the above organizations, the senior decision maker handling exports/imports, or in the case of Business Associations, a senior official, was interviewed face-to-face .

Creation of sample frameThe criteria for selection of respondent companies, specified in the Client Brief, was strictly followed by LMRB, who interviewed only those Sri Lankan companies which were engaged in trade with India, using the ILFTA route, on products which did not fall in the negative list of both countries.

AppointmentsAppointments were made with senior decision makers in the different companies. This resulted in many difficulties as follows: Being very senior people in the industry, getting appointments to fit their busy schedule was near impossibleIn many cases interviews had to be re-scheduled due to the non- availability of the respondentFieldwork was carried out from October 2010 January 2011

Counts%Total no. of telephone calls made1186100Total no. of wrong numbers18215Total no. of no answers1069Total no. requesting call backs(Actual no of call backs exceeding