Nepal and Sri Lanka on Friday called for greater integration of financial markets in South Asia, saying it would help nations of the region benefit from growth witnessed by a bigger country like India.
Speaking here at the India Economic Summit, Nepalese Finance Minister Yuba Raj Khatiwada said while domestic market and financial markets often get turbulent, it is for the respective countries to fix that.
"But our regional (South Asia) integration of financial markets is very limited," Khatiwada said, adding, "Unless we reintegrate our financial markets and make our payments systems strong the benefit of one country growing faster would be very slow to the other countries of the region."
Financial integration of the region would be critical to see that all countries in the region grow at least in an agreeable manner, he added.
Expressing similar views, Minister of Economic Reforms and Public Distribution of Sri Lanka, Harsha De Silva said, "On connectivity we have to really work together and also on better financial integration. How do we benefit from that and none of us will lose. We can only, only prosper."
He further said, "This region (South Asia) is the least integrated region in the world."
Sri Lanka urges India to remove trade barriers
Harsha de Silva asked India to remove restrictions on import of tea from Sri Lanka.
"India banned export of onions in the last few weeks, perhaps you may not realise it but in small countries like ours, it has major impact on prices," he said.
Last month, India had banned exports of onion and imposed stock limit on traders to ensure domestic availability amid rising prices of the kitchen staple, which had touched Rs 80 per kg.
The Centre had also stopped immediately shipments of onion at below minimum export prices to Sri Lanka and Bangladesh and warned violators of strict action.
Regarding export of tea to India, Silva further said "we would like to see barriers brought down and quotas removed".
On these things, he said, "We don't need to compete, we can collaborate. So, trade barriers and restrictions among our countries in this region must seriously be brought down."