Thursday, September 22 2005 15:41 Hrs (IST) - World Time -

Colombo: Indo-Sri Lanka trade, which has reached US$ 1.73 billion, is set to receive a boost with the two countries working on a Comprehensive Economic Partnership Agreement (CEPA), India's top envoy said in Colombo today (Sept 22, 2005).

Indian exports to Sri Lanka were to the tune of 1.3 billion dollars while Sri Lanka exported 382 million dollars worth of goods last year, High Commissioner Nirupama Rao said.

"The five years of the free trade agreement has been a matter of pride for both countries," she said while opening a 'Made-in-India' trade exhibition here together with Prime Minister Mahinda Rajapakse.

"We have miles to go before we can rest."

Official figures show that the trade gap between the two countries was narrowing since the free trade agreement.

Prime Ministrer Rajapakse said he wanted closer cooperation with India and asserted that his country should follow closely New Delhi's economic model.

"As time goes on we will buy more from India," the premier said.

The two countries are currently in negotiations on a CEPA that will further enhance trade.