But Sri Lanka claims that the additional 598 textile items which are not included in India's negative list, but are instead given a 25% margin of preference or duty concession, are equivalent to the items on the negative list. India's effective negative list therefore works out to 1,127 items.

Another contentious issue that the two countries aim to sort out in the next round is that of trading in services. Right since beginning, Sri Lanka has been apprehensive about opening up its services sector to Indian competition as most of its professional services sectors are unorganised and stand the risk of being swamped by Indian services, said Kher. The major unresolved issue as regards services, however, is that of allowing the Indian financial services sector to enter Sri Lanka, said Kher.