India, Sri Lanka agree to enhance INR-LKR trade settlements, encourage investments in island nation to enhance its export potential - World News Network

New Delhi [India], December 16 (ANI): The meeting between Prime Minister Narendra Modi and Sri Lankan President Anura Kumara Dissanayake marked a significant milestone in the relationship between the two nations, with the leaders appreciating the India-Sri Lanka Free Trade Agreement (ISFTA) and agreeing to enhance Indian and Sri Lankan rupees trade settlements.
The Ministry of External Affairs in ‘India – Sri Lanka Joint Statement: Fostering Partnerships for a Shared Future’ said, “The two leaders appreciated that the India-Sri Lanka Free Trade Agreement (ISFTA) has enhanced the trade partnership between the two countries while acknowledging that there is immense potential for further expanding the trade ties Underscoring the pace of economic growth and opportunities in India as well as the growing market size and its potential for enhancing trade and investment for Sri Lanka.”
The MEA statement added, “Both leaders agreed that it is now opportune to further enhance the trade partnership by committing to continue discussions on the Economic & Technological Cooperation Agreement; enhance INR-LKR trade settlements between the two countries; and encourage investments in key sectors in Sri Lanka to enhance its export potential.”
Key discussions also focused on the growing political interactions of the past decade, enhancing development cooperation, capacity building, debt restructuring, and boosting connectivity. The meeting also underscored India’s role in supporting Sri Lanka’s economic recovery. Both leaders also highlighted the importance of fostering people-centric collaborations.
Acknowledging the increased political interactions in the last decade and their contribution towards deepening the bilateral ties, both leaders agreed to further intensify political engagements at leadership and ministerial levels.
The two leaders also underscored the importance of regular parliamentary-level exchanges to promote democratic values and share expertise on their institutional best practices.
The two leaders also acknowledged the positive and impactful role of India’s development assistance to Sri Lanka which has significantly contributed to its socioeconomic growth. President Disanayaka appreciated India’s continued support for the implementation of projects despite the ongoing debt restructuring. He further acknowledged India’s decision to extend grant assistance for projects that were originally undertaken through Lines of Credit, thereby reducing the debt burden of Sri Lanka.
Reaffirming their commitment to work closely in further intensifying people-oriented development partnership, both leaders agreed to work together for the timely completion of ongoing projects such as Phase III & IV of Indian Housing Project, 3 (three) Islands Hybrid Renewable Energy Project and High Impact Community Development Projects across Sri Lanka; extend full support towards timely implementation of projects for the Indian Origin Tamil community, Eastern Province, and solar electrification of religious places in Sri Lanka; and identify new projects and areas of cooperation for development partnership, in accordance with the needs and priorities of the Government of Sri Lanka.
Underlining India’s role in extending capacity-building support to Sri Lanka and factoring the need for customised training and capacity-building in different fields in Sri Lanka, the leaders further agreed to organise focused training of 1500 Sri Lankan civil servants across ministries and departments over a period of five years through the National Centre for Good Governance in India; and committed to explore further training programmes for Sri Lankan officials in civil, defence and legal domains among other areas, in keeping with the requirements of Sri Lanka.
President Disanayaka thanked PM Modi for India’s support in stabilising the Sri Lankan economy through unparalleled and multi-pronged assistance including emergency financing and forex support worth USD 4 billion. He acknowledged India’s crucial assistance in Sri Lanka’s debt restructuring process, including as co-chair of the Official Creditors’ Committee (OCC), as being instrumental in finalising the debt restructuring discussions in a timely manner. He further thanked the Government of India for extending financial assistance of USD 20.66 million to settle payments due from Sri Lanka for projects completed under existing Lines of Credit thereby significantly reducing the debt burden at a critical time, the MEA added.
Underscoring the close and special ties with Sri Lanka, PM Modi reiterated India’s consistent support to the country in times of need and in its quest for economic recovery and stability, and prosperity for its people. The leaders instructed officials to finalise discussions on the bilateral MoU on debt restructuring.
The leaders underlined the importance of greater connectivity and acknowledged the presence of complementarities between the two economies which could be harnessed for economic development and growth of both countries.
In this regard, while expressing satisfaction at the resumption of the passenger ferry service between Nagapattinam and Kankesanthurai, they agreed that officials should work towards the early recommencement of the passenger ferry service between Rameshwaram and Talaimannar, the MEA in the joint statement said.
Explore the possibility of jointly working on rehabilitation of Kankesanthurai port in Sri Lanka, which will be implemented with grant assistance from India, MEA added.
The two leaders reaffirmed that the India-Sri Lanka bilateral partnership is underpinned by deep-rooted cultural and civilizational ties, geographical proximity and the people-to-people relation.
Earlier in the day, Dissanayake expressed gratitude to the Indian government for its support during Sri Lanka’s economic crisis and subsequent recovery efforts and acknowledged India’s role in debt-free structuring process.
The Sri Lankan President said, “We faced an unprecedented economic crisis some two years ago and India supported us immensely to come out of that quagmire. It has also helped us immensely after that, especially in the debt-free structuring process.”
He added, “I know that Sri Lanka secures a very significant place in the foreign policy of India. PM Modi assured us full support and he also assured us that he will always protect the territorial integrity and sovereignty of Sri Lanka.”
He also thanked PM Modi and President Droupadi Murmu for the warm hospitality extended to the Sri Lankan delegation.
“After becoming the President of Sri Lanka, this is my first foreign visit. I am so happy that I was able to come to Delhi on my first State visit. I want to thank India for the invitation extended to me and also for the warm hospitality that was extended to the whole delegation, including myself. I want to thank PM Modi and President Murmu…This visit paved the way for the cooperation between the two countries to be developed further,” Dissanayake said.
PM Modi and President Dissanayake made the joint statement after holding talks in the Hyderabad House in Delhi. The two leaders warmly greeted each other and were engaged in talks as they proceeded to hold the meeting.
The Sri Lankan President is on a three-day state visit to India from December 15-17. This is the first bilateral visit of Dissanayake to India after assuming office in September. (ANI)

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