Sri Lanka protectionists score against trade liberties

May 26, 2010 (LBO) - Sri Lanka's increasingly strident protectionist business interests have staged an apparently successful protest in the capital Colombo against further liberalization of trade and services with India.
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The protest came ahead of a visit by India's foreign secretary who was expected to push for a revival of a liberalization deal in trade and services, called the comprehensive economic partnership agreement (CEPA).

"CEPA will destroy 2,500 years of Sri Lankan independence,' proclaimed one red lettered poster carried by a protester Wednesday in front of the residence of Sri Lanka's president Mahinda Rajapaksa.

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The interests behind the protest apparently found a sympathetic ear in the country's president.

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"The government will not enter into any pact or agreement that is inimical to its people and economic interests," the AFP news agency said quoting a statement from the president's office.

The CEPA was blocked on the brink of signing earlier.

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Tied Down

Trade barriers block competition by giving inefficient domestic business interests a free hand to overprice their goods and sell to a helplessly captive consumer base without any incentive to become efficient or keep the

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