India is perhaps the most important trading partner for Sri Lanka. For Sri Lanka, India is the third largest export market and also India is the second largest investor in Sri Lanka. Their bilateral trade now stands at nearly $2 billion annually and both the countries are keen to increase it. Sri Lanka and India have free trade agreement (FTA) since March 2000. Since then, bilateral trade is increasing at a rapid pace. Sri Lankan government is now desperately seeking foreign investment and it is expecting that Indian companies will find Sri Lanka more attractive. I found an interesting report published Lanka Business Online titled, ' Sri Lanka expensive to do business despite trade pact: India'.
According to the report, Indian companies are unhappy that Sri Lanka has too many holidays and also wage structure is not flexible enough. About holidays, I agree with Indian companies that third world countries cannot afford too many holidays. However, about 'arbitrary salary increases' Sri Lankan government must act cautiously. On going civil war has already destroyed the backbone of Sri Lankan economy. Meddling with the salary structure may only cause further grievance among the workers.
Do you agree with me?
I agree with you. Third world countries cannot afford too many holidays. That's one of Philippine's constant problems and the government can't change it anymore. What our president does is to move the holidays into a more convenient day mostly during weekends or near weekends such as friday or monday. Or sometimes declare a particular holiday as a special holiday where companies decide if their workers will observe the non-working day or not.
Posted by: nepspeed82 | May 26, 2006 1:27 PM | Permalink to Comment