srilanka

SRILANAKA:

INTRODUCTION TO SAARC:
The south Asian association for Regional Corporation was established on 8th December 1985 with objectives to promote economic and social progress within the nations. At the time of establishment of the SAARC when government of Nepal, India, Pakistan, Sri Lanka, Maldives, Bhutan and Bangladesh together stood for friendship and co-operation among each other. Afghanistan later got membership in SAARC and became the 8th member nation.
All the member head of eight different countries in SAARC has made a common voice in the following heading:
1. Desirous of promoting peace, stability, amity and progress in the region through strict adherence to the principles of the UNITED NATIONS CHARTER and NON-ALIGNMENT, particularly respect for the principles of sovereign equality, territorial integrity, national independence, non-use of force and non-interference in the internal affairs of other States and peaceful settlement of all disputes.
2. conscious that in an increasingly interdependent world, the objectives of peace, freedom, social justice and economic prosperity are best achieved in the SOUTH ASIAN region by fostering mutual understanding, good neighbourly relations and meaningful cooperation among the Member States which are bound by ties of history and culture;
3. Aware of the common problems, interests and aspirations of the peoples of SOUTH ASIA and the need for joint action and enhanced cooperation within their respective political and economic systems and cultural traditions;
4. Convinced that regional cooperation among the countries of SOUTH ASIA is mutually beneficial, desirable and necessary for promoting the welfare and improving the quality of life of the peoples of the region;
5. Convinced further that economic, social and technical cooperation among the countries of SOUTH ASIA would contribute significantly to national and collective self-reliance;
6. Recognising that increased cooperation, contacts and exchanges among the countries of the region will contribute to the promotion of friendship and understanding among their peoples;
7. Recalling the DECLARATION signed by their Foreign Ministers in NEW DELHI on August 2, 1983 and noting the progress achieved in regional cooperation;
8. Reaffirming their determination to promote such cooperation within an institutional framework;

SAARC has been established with following objectives:
1. to promote the welfare of the peoples of SOUTH ASIA and to improve their quality of life;
2. to accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realise their full potentials;
3. to promote and strengthen collective self-reliance among the countries of SOUTH ASIA; d) to contribute to mutual trust, understanding and appreciation of one another's problems;
4. to promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields;
5. to strengthen cooperation with other developing countries;
6. To strengthen cooperation among themselves in international forums on matters of common interests.
7. To cooperate with international and regional organisations with similar aims and purposes.

Countries among the SAARC countries have co-operating in the following areas:
1. Agriculture and rural development
2. Biotechnology
3. Culture
4. Economic and trade
5. Education
6. Energy
7. Environment
8. Finance
9. Funding Mechanism
10. Information, Communication and Media
11. People-to-People Contact
12. Poverty Alleviation

SAARC has established regional centres in following countries:

1. SARC Agricultural Centre (SAC), Dhaka
2. SAARC Meteorological Research Centre (SMRC), Dhaka
3. SAARC Tuberculosis Centre (STC), Kathmandu
4. SAARC Documentation Centre (SDC), New Delhi
5. SAARC Human Resources Development Centre (SHRDC), Islamabad
6. SAARC Coastal Zone Management Centre (SCZMC), Maldives
7. SAARC Information Centre (SIC), Nepal
8. SAARC Energy Centre (SEC), Pakistan
9. SAARC Disaster Management Centre (SDMC), India
10. SAARC Forestry Centre (SFC), Bhutan
11. SAARC Cultural Centre (SCC), Sri Lanka

About Sri-Lanka:

Quick overview about Sri-Lanka
1. Full name: Democratic Socialist Republic of Sri Lanka
2. Population: 21.2 million (UN, 2012)
3. Capital: Colombo (commercial), Sri Jayawardenepura (administrative)
4. Largest city: Colombo
5. Area: 65,610 sq km (25,332 sq miles)
6. Major languages: Sinhala, Tamil, English
7. Major religions: Buddhism, Hinduism, Islam, Christianity
8. Life expectancy: 72 years (men), 78 years (women) (UN)
9. Monetary unit: Sri Lankan rupee
10. Main exports: Clothing and textiles, tea, gems, rubber, coconuts
11. GNI per capita: US $2,580 (World Bank, 2011)
12. Internet domain: .lk
13. International dialling code: +94

Sri-Lankan Economy:

Sri Lanka is mainly an agricultural country. The chief crop is rice with which the country is almost self sufficient. Tea, rubber and coconut are also important agricultural crops, with tea being a major foreign exchange earner. In addition, other crops of importance are cocoa and spices such as cinnamon, cardamom, nutmeg, pepper and cloves. Fruit and vegetables, native to both tropical and temperate regions, grow well in Sri Lanka. Sri Lanka is also a major exporter of precious and semi-precious stones. Within the last few years remittances from Sri Lankans employed abroad have contributed a large share towards foreign exchange.

The last three decades have seen tourism emerge as an important industry. There has also been a rapid growth in manufacturing industries which offer a wide range of export goods such as petroleum products, leather goods, ready made garments and electronic equipment.

Relation of Sri-Lanka with other SAARC nation:

Sri-Lanka-Nepal relation:

Nepal and the Democratic Socialist Republic of Sri Lanka established diplomatic relations on 1st July 1957. Relations between the two countries are marked by goodwill, mutual understanding and cooperation. Nepal opened an Honorary Consulate General in Colombo in 1975 and established its Embassy in 1995. Sri Lanka has a residential Embassy in Kathmandu since 1993. Nepal and Sri Lanka are the founder members of the South Asian Association for Regional Cooperation (SAARC) and are also the members of another regional organization called Bay of Bengal Initiatives for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Both countries share similar views on many international issues and work closely in various international fora such as the UN, NAM, WTO, etc.

Trade and Commercial Relations
Nepal and Sri Lanka concluded bilateral trade agreement on 3 April 1979. Despite this agreement, trade between the two countries is not up to the desired level due to, among other things, higher cost of transportation, lack of conducive environment for business , lack of interests on the part of business people etc.

Sri-Lanka Nepal Relation:
India and Sri Lanka enjoy a robust trade and investment relationship, with bilateral trade growing rapidly in the last decade and a number of leading Indian private sector companies investing in Sri Lanka and establishing a presence in this country. Sri Lanka is India's largest trade partner in South Asia. India in turn is Sri Lanka's largest trade partner globally. Trade between the two countries grew particularly rapidly after the entry into force of the India-Sri Lanka Free Trade Agreement in March 2000. Over the next eight years, bilateral trade multiplied nearly five-fold. Following a downturn in 2009 on account of the global economic recession, trade rebounded in 2010. According to Sri Lankan statistics, bilateral trade in 2011 amounted to US $ 4.86 billion, which is about 66% higher than 2010. In 2011, India’s exports to Sri Lanka amounted to US $ 4.3 billion, which is an increase of about 75% compared to 2010. Bilateral trade in 2012 amounted to US$ 4.002 billion, registering a decline of 17.59% as compared to corresponding period of 2011. In recent months, the two countries have also resumed discussions on a Comprehensive Economic Partnership Agreement and steps to finalize the Agreement are expected to be taken in the near future. Sri Lanka has long been a priority destination for direct investment from India. India is among the four largest overall investors in Sri Lanka with cumulative investments over US$ 800 million. India was the second largest foreign direct investor in Sri Lanka in 2011, with an investment of US$ 147 million (out of a total inbound FDI of US$ 1057 million). Our main investments are in the areas of petroleum retail, hospitals, telecom, vanaspati, copper and other metal industries, real estate, telecommunication, hospitality & tourism, banking and financial services, IT and food processing (tea & fruit juices). Indian business orgnaisations such as IOC, Tatas, Bharti Airtel, Piramal Glass, LIC, Ashok Leyland, L&T and Taj Hotels are present in Sri Lanka. The last few years have also witnessed an increasing trend of Sri Lankan investments into India. Significant examples include Ceylon Biscuits (Munchee brand), Carsons Cumberbatch (Carlsberg), Brandix (about US$ 1 billion to set up a garment city in Vishakapatnam), MAS holdings, John Keels, Hayleys, and Aitken Spence (Hotels), apart from other investments in the freight servicing and logistics sector.
Both countries have cultural and political relation.