In an attempt to boost the MSME-dominated coir sectors in India and Sri Lanka, both countries are likely to set up joint ventures to promote the commodity. As a part of this project, the two countries will engage in mutual technology transfer and evolve a joint marketing strategy for cashing in on the global demand for coir and coir-based products. This development holds huge significance for Indian MSMEs in the coir sector, which are likely to gain from Sri Lankan expertise in coir fibre production as well as from the technology transfer programme of the collaboration.Incidentally, a Sri Lankan delegation is slated to visit the Central Coir Research Institute at Kalavoor and other production centres in the Alapuzha district of Kerala, which might open up further avenues of trade between the two countries in the coir sector and benefit Indian MSMEs.

Notably, India and Sri Lanka are two of the biggest producers of coir and account for over 90% of the 3,50,000-tonne global production of the commodity. Also, both countries have recently agreed to strengthen economic ties by furthering discussions on the proposed Comprehensive Economic Partnership Agreement, which is expected to reduce trade barriers between India and Sri Lanka considerably, thereby facilitating trade for MSMEs.