Dec 31, Colombo: Bilateral trade between India and Sri Lanka is envisaged to grow to USD 5 billion by 2010, Sri Lankan government sources say.

This was stated at a meeting between a visiting delegation from India and Sri Lanka’s Minister of Enterprise Development and Investment Promotion. The Minister met a 12-member delegation from the Confederation of Indian Industry (CII), India's principal Chamber of Commerce. The members expressed keen interest to invest in Sri Lanka.

According to the Minister, the Free Trade Agreement (FTA) signed with India had markedly boosted bilateral trade between the two countries. India’s exports to Sri Lanka were currently valued at USD 2.25 billion, while Sri Lanka’s exports were valued at USD 470 million.

Indian investors are to benefit from provisions and privileges available to them under the Indo-Sri Lanka FTA.

The delegation expressed its interest in investing in certain sectors, particularly steel, education, healthcare, information technology and business process outsourcing, construction, and ceramics production, among others.

The Minister also emphasized the advantages Sri Lanka offers to investors, notably a comprehensive regime of incentives under the Board of Investment that encompasses a myriad of sectors and economic activities.