'Over the past few years, there has been a significant increase in the bilateral trade between India and Sri Lanka. Currently, the value of Indo-Lanka trade stands at $ 4.7 billion, with exports from Sri Lanka registering a steady growth. Among other goods of Lankan origin figuring in such trade are, cigarettes and liquor, Narayan explained.

Narayan was making an invited address titled, 'India-Sri Lanka Economic Relations in Modi's India' at the Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI), Colombo on Monday. The event was organized by the LKI in collaboration with the Institute of Policy Studies (IPS), Colombo.

Addressing a large and representative audience at the LKI auditorium Narayan added that there is a large, informal boat trade from ports, such as Tuticorin in South India, to Sri Lanka, that if formalized could enhance formal inter-state trade and eventually add to the GDP of the countries. This trade is growing at the rate of 13 to 14 per cent. Sri Lankan goods, such as, cement, auto parts and construction material figure in these informal trade exchanges.