Gardado en:
| Main Authors: | , |
|---|---|
| Formato: | Recurso digital |
| Idioma: | inglés |
| Publicado: |
Zenodo
2025
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| Subjects: | |
| Acceso en liña: | https://doi.org/10.5281/zenodo.16903663 |
| Tags: |
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Table of Contents:
- <p><span lang="EN-US">This study evaluates the consequences of the India-Sri Lanka Free Trade Agreement (ISFTA) on foreign direct investment (FDI) flows between India and Sri Lanka during the period of 2006-2024 with some comparisons towards the increasing impact of China. The study investigates whether the ISFTA has stimulated sustained Indian FDI growth, what is its comparative role to China, and whether the agreement contributed to long-term bilateral investment. It employed a mixed-methods perspective involving a quantitative aspect (CAGR, trend analysis, percentage share based on BOI Sri Lanka, RBI, Central Bank of Sri Lanka data) and a qualitative review of the policy framework, agreements and investment reports. The results suggest some considerable increases in Indian FDI since 2006, which peaked at US$341 million in 2018 but fluctuated significantly. Conversely, it suggests that there was significant expansion within Chinese FDI from 2012 onwards and has consistently surpassed Indian investment levels. In 2022, 34% of Sri Lanka FDI inflows were Chinese. Overall, ISFTA made a positive contribution to strengthen investment relations between India and Sri Lanka, however its impact on supporting ongoing competitiveness of investment in the long-term - in relation to China's emergence - has been modest. The study concludes that although India has considerable unutilised potential in certain sectors, like information technology, tea etc., there is an urgent need for strengthened policy support and investment strategies for India's deeper involvement in the economic development of Sri Lanka.</span></p>