India, Lanka to enhance economic cooperation

NEW DELHI: India has said that it is looking at new areas for enhancing economic cooperation with Sri Lanka, including agriculture, and a line of credit for the island nation was in the pipeline.

New Delhi will also review the double taxation avoidance treaty with Colombo, Union Finance Minister P Chidambaram said after a meeting with visiting Sri Lankan Prime Minister Mahinda Rajapaksa.

"We discussed areas of future cooperation. They are eager to learn from our experience," he said, adding India was considering a line of credit for Sri Lanka and the details will be worked out.

Future areas of cooperation included milk and dairy processing, fruits, horticulture and road infrastructure, he said, adding "substantial talks will be held when the two Prime Ministers meet."

"It was a general exchange of views as you know we have a Free Trade Agreement with Sri Lanka. We were also discussing other agreements. I discussed progress of agreements in other areas and FTA. There are one or two problems which we will sort out", he said.

Chidambaram gave the details of the Golden Quadrilateral Project to the Sri Lankan Premier. He said the double taxation avoidance treaty between the two countries will be reviewed.

He also discussed the LTTE issue with Rajapaksa and said Norway was still in the process of negotiations but it was in the Indian interest that the issue is resolved.

Food and Agriculture Minister Sharad Pawar also called on the Sri Lankan Premier.