The Indian High Commission (embassy) in Colombo said, there would be no sourcing requirement for fabric for up to eight million pieces of fabric exported from Sri Lanka each year from the current five under the Indo Lanka Free Trade Agreement.
The validity of a sanitary import permit (SIP) for meat had been extended to one year from the current six months.
The high commission said on September 06, 2012, export tax for Sri Lankan made fabric was cut to 5.0 percent from 11.0 percent under the South Asia Free Trade Arrangement.
Citizens of India and Sri Lanka traded freely in ancient times and Sri Lanka was part of a ‘Silk Route of the Sea’ that was at time controlled by India based empires and later by European powers.
After independence from British rule and the rise of economic nationalism rulers of both countries raised trade barriers and reduced the ability of their citizens to trade freely and the entire South Asian region lagged behind the rest of the world except Africa.