In a landmark decision, the Sri Lanka government has decided to allot India and China with Special Economic Zones to set up industries. This was disclosed by the Sri Lankan minister for international trade and strategic development, Malik Samarawickrama.
The Indians would be setting up pharmaceutical and auto parts industries in their zone. However, the location for the Indian SEZ is yet to be finalized. On the other hand, the Chinese have asked for 55 sq km (15, 000 acres) of land in the Hambantota area in the Southern Province for their zone. Their request is being processed, he added.
An Indian delegation would visit the island to begin talks on a framework for the Economic and Technical Cooperation Agreement (ETCA). A week after that, a Chinese delegation is expected for talks on a Free Trade Agreement (FTA). The Sino-Sri Lanka FTA is likely to be signed in 2017. An FTA with Singapore is also on the cards.
