India Assures Support To Sri Lanka In Rebuilding Of Economy

Colombo: India on Friday assured continued support to Sri Lanka’s economic rebuilding and, in turn, got word from Colombo that its territory will not be allowed to be used in a manner inimical to New Delhi’s security interests.

During a meeting with External Affairs Minister S Jaishankar here, President Anura Kumara Dissanayake said that India’s economic support is critical to realise his vision of a prosperous Sri Lanka and meeting the aspirations of the people.

Dissanayake also reiterated that Sri Lankan territory “will never allowed to be used in a manner inimical to India’s security interests,” the Ministry of External Affairs (MEA) said in a release.

Jaishankar, who is the first foreign dignitary to visit Sri Lanka since the National People’s Power (NPP) government led by Dissanayake came to power on September 23, also assured that India would sign an MoU with Sri Lanka on bilateral debt restructuring and endorse private bond-holder debt restructuring agreement.

In a day-long visit, Jaishankar also met Prime Minister Harini Amarasuriya, his counterpart Vijitha Herath, Sri Lanka’s leader of the opposition from the Samagi Jana Balawegaya party Sajith Premadasa, and former Sri Lankan president Ranil Wickremesinghe.

During his meeting with Dissanayake, Jaishankar highlighted how the ongoing initiatives in the field of energy production & transmission and fuel & LNG supply among other fields would “contribute to economic sustainability and provide new streams of revenue” for the island nation.

The Sri Lankan President said that India’s economic support is “critical to realise his vision of a prosperous Sri Lanka and meeting the aspirations of the people,” the MEA statement said, adding, that the potential of export of renewable energy to India could help reduce production costs in Sri Lanka and create additional resources.

Regarding security and defence, the meetings brought out that the interests of India and Sri Lanka were closely intertwined, the MEA said. “The importance of a continuous dialogue that would promote trust, transparency and mutual sensitivity was recognised. The President reiterated that Sri Lankan territory would never allowed to be used in a manner inimical to India’s security interests,” it added.

India has regularly raised objections to the presence of Chinese research vessels near and at the Sri Lankan ports.

Dissanayake said on X: “Discussions focused on boosting cooperation in tourism, energy, and investment. Dr Jaishankar reaffirmed India’s support for Sri Lanka’s economic recovery. The importance of continued collaboration on fisheries, security, and national unity was also discussed.” President Dissanayake expressed his appreciation for the financial support India provided during Sri Lanka’s recent economic crisis and stressed the importance of continued collaboration, according to Sri Lanka’s President’s Media Division (PMD) statement.

Speaking about Sri Lanka’s debt restructuring efforts, Jaishankar recalled that India had been supportive of the island nation’s economic stability and recovery from the very start as it was the first country to give financing assurances, which enabled the IMF to finalise the Extended Fund Facility (EFF).

The External Affairs Minister also confirmed India’s support in the Official Creditors’ Committee in respect of Sri Lanka’s agreement with International Sovereign Bond holders, the MEA said, adding, “India is also willing to expedite the conclusion of its bilateral MoU with Sri Lanka.” Jaishankar conveyed India’s strong commitment to advance bilateral cooperation based on its ‘Neighbourhood First’ policy and SAGAR outlook during his meeting with Herath.

He assured that India’s ongoing development assistance to Sri Lanka “through projects of Sri Lankan priority” will be continued and listed New Delhi’s offers to modernise the Kankesanthurai port through a USD 61.5 million grant; converting seven completed Line of Credit projects to the tune of USD 20 million into grant, and gifting of 22 diesel locomotives.

The minister also raised concerns over the detention of Indian fishermen by Sri Lanka and pressed for their early release.

Fishermen from both countries are arrested frequently for inadvertently trespassing into each other’s waters.

“A humanitarian approach focused on livelihood issues would create a durable basis for addressing this matter. A meeting of the Joint Working Group on Fisheries and of the Fishermen Associations would be timely,” the MEA said.

The EAM appreciated the release of 50 Indian fishermen on Friday.

Jaishankar reiterated India’s support for the aspirations of all communities, including Tamils, for equality, justice, dignity, and peace while maintaining the unity, territorial integrity and sovereignty of Sri Lanka. “The full and effective implementation of the 13th Amendment of its Constitution and the early holding of Provincial Council elections will facilitate these objectives,” the MEA added.

Jaishankar discussed “Digital Public Infrastructure, training and capacity building” with Prime Minister Amarasuriya.

In April 2022, the island nation declared its first-ever sovereign default since gaining Independence from Britain in 1948. India had then pitched in with about USD 4 billion in assistance to enable the island nation to recover from a deep economic crisis after it announced the default on over USD 51 billion foreign loans.

While in Opposition, Dissanayake had expressed his reservations about some of the Indian projects, especially the sustainable energy projects run by the Adani Group.

In the run-up to the election, Dissanayake had pledged to annul those projects if voted to power, claiming that the projects were inimical to Sri Lankan interests.

Jaishankar also extended an invitation on behalf of Prime Minister Narendra Modi to President Dissanayake to visit India at a mutually convenient date. The PMD statement said President Dissanayake also extended a similar invitation to Modi to visit Sri Lanka.