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Sri Lankan garments get easier access to India

Dilshan Wirasekara, Chairman of the Colombo Stock Exchange

April 28, 2008 (LBO) – India has lifted a rule that required three million pieces of Sri Lankan garments allowed duty to free to India to be made from Indian fabric and also lifted entry port restrictions, the Commerce Department said. . Another five million pieces of garments would be allowed in duty free or a preferential marginal rate of 75 percent of duty, provided they were made out of Indian fabric.

India had allowed a total of eight million pieces of Sri Lankan-made garments to enter India under concessionary terms under the Indo-Lanka Free Trade Agreement, subject to fabric and entry port requirements.

The new concessions negotiated as part of the Comprehensive Economic Partnership Agreement between the two countries came into effect on April 22, the commerce department said in a statement.

Entry port restrictions for Sri Lankan garments have also been lifted, the statement said.