Friday, October 17, 2008

Sri Lanka develops cold feet on CEPA

NEW DELHI: Even as the Centre grapples with the domestic fallout of the war in Lanka, concerns are growing that an economic pact between India andSri Lanka has been indefinitely put off.

Officials here said that the Lankan government has developed cold feet on signing the Comprehensive Economic Partnership Agreement due to resistance from its Leftist allies and businesses. At the same time, the Indian establishment believes that the Rajapakse government wants to complete the military offensive against LTTE before tackling any other issue, particularly one that is mired in domestic politics. Full Text