India proposes to invest USD 2b in Sri Lanka

[Tuesday, February 12, 2008 - 04.50 GMT]  

India is committed to a closer economic cooperation with Sri Lanka, and investments of 2 billion dollars from business houses in India into Sri Lanka are at a discussion stage said the visiting Indian State Minister for Commerce Jairam Ramesh said on Monday (February 11).

"While 220 million dollars worth of Indian investment is already there in Sri Lanka and as much as 2 billion dollars of investments by Indian business houses into the Island country are under discussions," said the Indian Minister at Indo-Sri Lankan Investment Seminar in Colombo.

The Minister, who is heading a business delegation, said another 360 million dollars of Indian investments in value terms to Sri Lanka are also in the pipeline.

The delegation comprises officials from Indian Oil, Oswal, Reliance textile group, Indo-Rama, Vardhaman and Mahindra and Mahindra.

The focus of the discussion is on education sector and textiles, the Minister said. The bilateral trade and investments are expected to get a boost after the Comprehensive Economic Partnership Agreement (CEPA), which is likely to be signed by both countries by April this year, he added.

He said, both countries are slated to enter into the CEPA ahead of the SAARC summit, scheduled for July in Sri Lanka.