TPCI Publication

The study suggests an approach to reduce Sri Lanka’s sensitive list under SAFTA. The concept of Revealed Comparative Advantage has been used to pair the RCAs for products on Sri Lanka sensitive list with the corresponding RCAs of India. Four categories of items are generated based on competitiveness of India or Sri Lanka on each of the items. This process helps in identifying items in which Sri Lanka is competitive and those where the India is not competitive. Such items are recommended for removal from Sri Lanka’s sensitive list. Items that are vulnerable to competition include those items where the India is competitive but Sri Lanka is not. Such items can remain on the sensitive list and can be removed gradually in a phased manner.