India plans to reduce the number of sensitive items that are at present subject to import duty under the South Asia Free Trade Agreement (SAFTA) for Pakistan and Sri Lanka.
A. M. Gondane, Joint Secretary, SAARC, India's Ministry of External Affairs told a conference on 'Enhancing India-Pakistan trade', organized by Indian Council for Research on International Economic Relations on Monday that India has already cut down the sensitive list of items for the least developed country members of SAARC and it plans to do the same for Pakistan and Sri Lanka in a calibrated manner.
"Sri Lanka had earlier told us that bringing down the sensitive list would have revenue implications for them, but I think some movement is likely to happen soon," Gondane said.
According to the Department of Commerce of Sri Lanka, the bilateral trade between India and Sri Lanka stood at US$ 3.63 billion in 2013. The balance of trade always remained in favor of India with exports from Sri Lanka were at $ 543.3 million while total imports from India were at US$ 3.09 billion.