Sri Lanka should aspire to achieve economic growth rates similar to those recorded by some Indian states such as Tamil Nadu, which have consistently maintained annual growth of 10 to 11%, MP Dr. Harsha de Silva said at the event marking the 25th anniversary of the India-Sri Lanka Free Trade Agreement (ISFTA) held at ITC Colombo yesterday.

He said that an average growth rate of around 5% is insufficient for Sri Lanka and stressed that the country should aim for sustained economic expansion of 10-11%.

Dr. de Silva also said that the proposed Economic and Technology Cooperation Agreement (ECTA), which has remained under discussion since 2000, should now be implemented.

"With a government enjoying a two-thirds majority and many of the trade unions that previously opposed the agreement now aligned with the government, there is an opportunity to move forward finally," he said.

He added that India should remove non-tariff barriers to facilitate higher exports from Sri Lanka and strengthen bilateral trade.

Dr. de Silva also urged policymakers to consider reducing taxes on imported raw materials, enabling Sri Lankan manufacturers to add value and re-export products more competitively.

The former Deputy Minister also questioned why Colombo's skyline continues to be dominated by apartment developments, asking what had happened to the much-publicised International Financial Centre project that was expected to transform the city a few years ago.

Meanwhile, Devika Lal, Counsellor (Economic and Commerce), said India has signed nine major free trade agreements since 2021 with Mauritius, the UAE, Australia, EFTA, the UK, Oman, New Zealand and, most recently, the European Union.

She said these agreements now connect India with 38 countries whose combined GDP exceeds USD 35 trillion, representing more than one third of the global economy.

"India remains the world's fastest-growing major economy, with a growth rate of 6.5% according to the IMF's April 2026 outlook and 7.6% for the last financial year as estimated by the World Bank. This is the India that the world is building and integrating with, not merely watching from a distance," she said.

Lal also congratulated the Indo Lanka Chamber of Commerce and Industry on the launch of its India Desk and the team from GITA, Global Investment & Trade Advisors, which will manage the initiative.

She said the establishment of an India Desk to assist Sri Lankan companies exploring opportunities in India reflects both the strong case for a deeper India Sri Lanka economic partnership and the growing interest among Sri Lankan entrepreneurs.

Recalling that the India Sri Lanka Free Trade Agreement has been in force since 2000 and remains the longest-standing agreement of its kind in the region, she said it has delivered stable and steady trade growth through every period of economic turbulence.

She noted that Sri Lankan exports to India have doubled over the past decade and highlighted that more than 65% of Sri Lankan exports to India utilise FTA benefits, compared with less than 5% of Indian exports to Sri Lanka.