Sri Lanka and India are set to hold the third round of talks on the proposed Economic and Technical Cooperation Agreement (ETCA) on January 4th and 5th in Colombo.
Discussions have become increasingly difficult as both parties failed to agree on a good deal, reported the Colombo Page.
Sinhala nationalists have also raised objections regarding any economic agreement with the Indian government, which they see as in breach of their sovereignty.
Whilst the Sri Lankan government hoped to have a deal in place by December 2016, the Indian government has pushed for a more a deadline of May 2017.
See more here.