NEW DELHI: India is in no hurry to complete the economic and technical cooperation agreement (ETCA) with Sri Lanka . But there are other, bigger reasons for India to guard its flanks while negotiating a second generation free-trade agreement (FTA) with Sri Lanka.China has evinced interest in an FTA with Sri Lanka as well. This could include, according to sources, Chinese companies setting up manufacturing bases in Hambantota and Monaragala areas of Sri Lanka and using the IndiaLanka FTA to push Chinese goods into India. “We have to be careful,“ said sources familiar with developments.The ETCA has also run into trouble in Sri Lanka with some opposition building up against it. In this, Japan may prove to be a valuable ally for both India and Sri Lanka.

Source: Economic Times April 27, 2017 04:41 UTC