On CEPA agreement with India
This letter is in reference to the article carried in last week's Business Times, regarding the CEPA agreement with India.
Samantha Kumarasingha has been a vociferous advocate against CEPA. I reproduce a few of his statements below and propose to prove their untenability with evidence:
"India has 106 times more unemployed people than in Sri Lanka and also speaks over 700 languages across the country. Hence, how can our professionals find work in India?” Samantha Kumarasinghe, Chairman, Nature’s Beauty Creation Ltd asked the audience."
Perhaps Mr. Kumarasinghe does not know that even without CEPA, there are hundreds of Sri Lankan professionals working in India. My own children work there without any problem, both in the IT field. There are plenty more managing garment factories. One does not need to know "700 languages" to work in India. If one has the skills, one can get a job anywhere.
"Sri Lanka should attract significant investments from countries like Switzerland, Brazil or China for the economic development of the country and to continue as an independent country free from Indian domination."
Get real, Mr. Kumara- singhe. We cannot change our geography and move next to Brazil or Switzerland. The fact is that we have always been closely connected to India, Mahavamsa mentality or not. Most of our last kings, and even Parakrama Bahu's parents were 100 per cent Indian. Would Mr. K prefer Chinese domination? It is not India that killed the local electronics industry, but China. Just ask Singer.
There are companies that ventured into India, failed, and been very vociferous about it Like Ceylon Biscuits Ltd. But on my frequent visits to India, I have seen the popularity of Keells products in supermarkets.
I have seen Damro showrooms practically in every big Southern city. Now Damro is a case in point. As far as I know, their steel furniture is competitive in India even though the steel has to be imported. Both Keells and Damro have good marketing, local partners, and better quality products. They do not make a song and dance about it, either.
On the other hand, there are large Indian companies that came a cropper in Sri Lanka, like Britannia Biscuits. Cadburys is not doing all the great.
I believe a large part of the value of imports is in the form of motor vehicles, which are not in the FTA. Ashok Leyland buses and trucks are being assembled here. It is the market which decides what to buy. As far as I know, the Sri Lankan drivers prefer Leylands, Tatas, Bajaj or Maruti by an overwhelming margin over Chinese, Brazilian or Swiss vehicles.
"Even the little exports that Sri Lanka does to India like arecanuts, petroleum products, animal feed ingredients, extruded copper as cables, electrical appliances, lentils and cowpea are mostly brought to Sri Lanka (as raw material) and reexported by Indian investors in Sri Lanka to their own companies in India,” Mr. Kumarasinghe disclosed.
What is preventing Sri Lankan companies from doing the same? Is it not lack of imagination?
Finally, I must point out that the protectionism advocated by certain Sri Lanka oufits is not only against Indians but also against certain Sri Lankan business communities. The opening of Hameedia's outlet in Kiribathgoda last month was greeted with black flags put up by a certain racist outfit patronized by one of the prominent participants at the CEPA seminar. CEPA observer
Colombo