KOCHI (PTI) -- Making a strong plea for removal of stringent Non-Tariff Barriers (NTB), Sri Lankan Minister of Export Development and International Trade G. L. Peiris has said restrictions can slow things down and undermine the confidence of the business community.

Such barriers were hurting trade between India and the Island nation. "NTB shakes the confidence and acts as a wet blanket," said the minister in Kochi while participating in the Business2business meet and Awareness program on Free Trade Agreement between India and Sri Lanka Monday.

Admitting that restrictions cannot be removed immediately, he said it has to make a gradual exit.

Talks between India and Sri Lanka on the Comprehensive Economic Partnership Agreement (CEPA) was going on and the two sides expect to conclude the negotiation process by middle of this year, he said, adding that review of the negative lists and rules of origin was underway.

Review of the double taxation agreement has almost been finalized, he added.

The Indo-Lankan Free Trade Agreement had contributed immensely to Sri Lankan economy. In 2000, while Indo-Sri Lanka trade was 670 million dollars, in 2006 it touched two billion dollars.

Indian investments in the island nation were four million dollars in 1999, while they rose to 115 million dollars in 2006.

India emerged as the third largest export market for Sri Lanka in 2006 accounting for about 7.2 percent of Lanka's total exports.

Overtaking Japan, India became the largest supplier of Sri Lankan imports in 2001 and continues to remain at the same position. In 2006, around 18.5 percent of Lanka's total imports was from India.