New Delhi: Sri Lankan Finance Minister Basil Rajapaksa on Wednesday called on Prime Minister Narendra Modi and Foreign Secretary Harsh V Shringla here to discuss bilateral issues and Indian assistance to the island nation which is currently crippled under severe economic crisis. The Srilankan envoy to India Milinda Moragoda was also present during the meeting.
Basil Rajapaksa's visit comes at a time when the country is facing an economic crisis. It is expected that this time, India will clear a further $ 1 billion emergency financial support that New Delhi and Colombo have been negotiating since Rajapaksa’s last visit to New Delhi early in December. Finance Minister Rajapaksa briefed the Prime Minister on initiatives being taken by both countries to increase bilateral economic cooperation and conveyed his thanks for the support extended by India for the Sri Lankan economy. Prime Minister also spoke about the central role that Sri Lanka occupies in India’s 'Neighbourhood First' policy and its S.A.G.A.R (Security and Growth for all in the Region) doctrine. He reiterated that India would continue to stand with the friendly people of Sri Lanka. Finance Minister Rajapaksa noted the deepening of people-to-people relations between both countries, including in the cultural sphere. Prime Minister pointed to the potential for increasing tourist flows, including through the joint promotion of Buddhist and Ramayan tourism circuits.
During the Sri Lankan FM's last visit to New Delhi, he had met EAM Jaishankar and Finance Minister Nirmala Sitharaman, after which both the sides had agreed on a “four-pronged” approach in addressing Sri Lanka’s economic crisis, that included Indian credit lines for the import of essentials such as food, medicines, and fuel. Additionally, the agreement also included a currency swap to help boost Sri Lanka's foreign reserves, an early modernization project of the Trincomalee oil tank farm, and Colombo’s commitment to facilitate Indian investments in Sri Lanka.
Apart from this, during Basil Rajapaksa's two-time visit to New Delhi, India and Sri Lanka signed several agreements at both governments as well as private-sector levels. On January 6 this year, the Indian Oil Corporation subsidiary Lanka IOC, Ceylon Petroleum Corporation and the Government of Sri Lanka signed three agreements to jointly develop the Trincomalee oil tank farm in eastern Sri Lanka. The Sri Lankan government also additionally signed a $500 million Line of Credit (LOC) agreement with India for the purchase of petroleum products. The first tranche will be used to buy 80,000 tonnes of petrol and diesel from Indian Oil Corporation (IOC).
As Sri Lanka’s alarming economic crisis has increased foreign debts, India has come out in support to retrieve them. Meanwhile, China is leaving no stone unturned to extend its influence beyond the economic and the bilateral aspect. Meanwhile, Rajapaksa also met EAM Jaishankar later today, followed by Sri Lankan Foreign Minister GL Peiris' meeting with Jaishankar earlier in February this year.
The meeting held today reportedly held discussions regarding the prospects of economic investment initiatives to strengthen the island nation, coupled with an exchange of views on the fishermen's issues. Jaishankar also requested his counterpart for the early release of Indian fishermen detained by Sri Lanka during the discussion.
Both the leaders also focused on additional steps to enhance Sri Lanka’s energy security. They recognized the importance of greater tourism for economic recovery and noted the importance of P2P linkages through greater connectivity. India has been steadfast in providing all possible help to the island nation which reflects the importance both the countries attach despite the growing Chinese belligerence in the region.
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