A Sri Lankan columnist on Sunday warned that India would be the loser if it imposed economic sanctions against Colombo in the wake of calls from politicians in Tamil Nadu.
"India will be the net loser if the central government follows with economic sanctions against Sri Lanka," Bandula Sirimanna wrote in the Sunday Times.
The warning followed a resolution the Tamil Nadu assembly passed, seeking imposition of economic sanctions for alleged war crimes, the trade ministry officials were quoted as saying.
"Sri Lanka trades directly with India (not with southern India), and only a few local companies have trade links with Tamil Nadu businessmen, a senior official said.
"Sri Lanka's net gain in trading is less than that of India, while her net losses are far higher than that of India," he added.
Many leading Tamil Nadu politicians were either supporters of or sympatbhetic to the Tamil Tigers, who were crushed in May 2009 by the Sri Lankan military.