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1. The overall trade turnover has grown eight times since the entry into force of the FTA in the year 2000 and reached USD 4.9 billion in 2011. 2. India has emerged as the largest trade partner of Sri Lanka. Sri Lanka has also emerged as Indias largest trade partner in South Asia, displacing Bangladesh from that position a few years ago. 3. India is also Sri Lankas most balanced trade partner. It is the only country among the top ten Sri Lankan trade partners where both exports and imports are substantial. Thus, India ranks first as exporter to Sri Lanka and third as importer from Sri Lanka. All other leading partners of Sri Lanka, viz., USA, UK, China, Singapore etc are either predominantly exporters to or importers from Sri Lanka. 4. India was the second largest exporter to Sri Lanka before the FTA and is now the largest exporter to Sri Lanka. But, more important, India became the third largest export destination for Sri Lankan products (rising from 16th rank) as a result of FTA. 5. Overall Sri Lankan exports to India have grown 10 times since 2000 while Indian exports, mostly on the non-FTA route, has grown 5 times. 6. Sri Lankan exports to India have largely been of new products where Sri Lanka did not traditionally have capacities. Therefore, FTA has created new export capacities in Sri Lanka that hitherto did not exist. It has brought precious foreign exchange to the country by helping create this potential. 7. While the trade gap has expanded, the FTA has helped by creating export opportunities for Sri Lanka at a much faster rate helping in bringing down the exportimport ratio from 10.4:1 in 1999 to 8.4:1 in 2011. 8. A better way to look at benefits of the FTA is to compare the trade between India and Sri Lanka using the FTA concessions, as this is trade generated by FTA for either country and conversely at non-FTA trade where trade is carried out without any concessions. Trade under FTA between India and Sri Lanka shows that Sri Lankan exports are at about USD 450-500 million and Indian exports at USD 600-700 million, which is fairly balanced. 9. Non-FTA exports from Sri Lanka to India are negligible at about US$ 50 million, the same as it was in 2000, when FTA came into force. Non-FTA exports from India to Sri Lanka are substantial standing at about US$ 2 billion, up from about US$ 500 million in 2000. 10. FTA has benefited Sri Lanka by creating 90% of its current export potential. In contrast, FTA accounts for only 30% of Indias export to Sri Lanka. The importexport ratio which has come down from 10:1 in 2000 to 8:1 in 2011 would have been 40:1 if the FTA was not there.