In a boost to bilateral economic relations, Sri Lanka is hopeful of signing the Economic and Technology Cooperation Agreement with India by the end of the year and will also expand the scope of the free trade pact.

“The proposed ETCA will be signed by the end of this year. Prime Minister Narendra Modi and I have decided that we must conclude it by the year end,” Sri Lankan Prime Minister Ranil Wickremesinghe said on Thursday at the Indian Economic Summit, which was jointly organised by the World Economic Forum and CII.

The ETCA, which has the potential to promote growth of $500 billion within the sub-regional economy, is expected to help Sri Lanka gain better access to India’s rapidly growing market, he said.

Wickremesinghe further added that India and Sri Lanka Free Trade Agreement will be expanded beyond trading in goods to cover trade in services, investments and technology co-operation.

Highlighting the role of India and China as global growth drivers, the Sri Lankan Prime Minister said these are the two only countries that can drive economic growth across the globe and manufacturing companies have no other place to go.

Wickremesinghe was also critical of the protectionist labour and trade policies of the developed countries and said, “Asia will bail out the world (from the economic crisis), if it is allowed to frame the rules (policies).”

Alternatively, he said that Asia will create its own systems, which would be very stable. “The rules were written by the West on globalisation, and we have played by it,” he said.

8% growth achievable: Nirmala Meanwhile, addressing the Summit, Commerce and Industry Minister Nirmala Sitharaman said that States are now working with the Centre to achieve eight per cent growth.

“States want to now get out of the rigmarole....Eight per cent growth is achievable. People have recognised that economic factors on which they have to work are also giving political dividends,” she said.

Her comments come days after the International Monetary Fund has maintained its growth forecast for India at 7.6 per cent for 2016-17 and 2017-18 and said it is the fastest growing economy in the world.

With States on board, Sitharaman said the government will now look to ease regulatory hurdles at the municipality and panchayat levels. “This will be our focus for the next four to five months....to ensure that businesses feel that ease is coming in their activities,” she said.

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