Sri Lanka is reluctant to sign the CEPA (Comprehensive Economic Partnership Agreement) with India, with many officials expressing a fear that CEPA would give India too much say in Sri Lanka's markets, work force and political affairs.
According to Business Standard, officials from Sri Lanka's Minister of Commerce, described a "fear psychosis" over dependence on the Indian market, giving indirect leverage on political matters by Sri Lanka, as well as concerns that Indian access to Sri Lankan markets would destroy Sri Lanka's 'domestic industry'.
One official also said:
"Some sections of the Sri Lankan industry is indeed a little apprehensive of signing a CEPA with India as it will entail services and investment trade. And their main fear is India would swamp their services industry. Besides, they want to build more political consensus on having the CEPA."
See our earlier post: Anyone but the Indians (29 Apr 2012)