Monday, January 6, 2020

India announces $450 credit line to Sri Lanka


<p align="justify">Indian Prime Minister Narendra Modi announced a USD 450 million financial assistance to Sri Lanka on Friday, including USD 50 million to combat terrorism, following "fruitful" talks with the newly elected president of the island nation, Gotabaya Rajapaksa. The discussions focused on issues such as meeting the Tamil community's aspirations in Sri Lanka, ways to strengthen security and trade ties and addressing fishermen's concerns. Modi said he assured Rajapaksa of India's full assistance in taking his country on the path of rapid development in his media statement after the talks.

The Prime Minister announced a USD 400 million credit line for development projects in Sri Lanka, in addition to providing a separate USD 50 million fund to help the country address terrorism challenges. A series of bombings struck Sri Lankan capital Colombo in April, which killed more than 250 people. "I discussed in detail with President Rajapaksa how to strengthen our cooperation in the fight against terrorism. Police officers in Sri Lanka are receiving training in prominent Indian institutions to counter-terrorism," Modi said.
On Thursday, Rajapaksa arrived in India on a three-day trip, after taking over Sri Lanka's reins ten days ago. It was a reflection of the importance he attaches to relations with India on his first overseas tour. On the lingering issue of Tamil, Modi said he was confident that the Sri Lankan government would continue the process of reconciliation and fulfill the Tamil community's aspirations. "The mandate you got represented the Sri Lankan people's hopes for a strong and prosperous Sri Lanka. In this regard, India's good wishes and cooperation are always with Sri Lanka," Modi said. Modi said a stable Sri Lanka is not only in India's interest but in the Indian Ocean region as a whole. Gotabaya, for his part, said the talks were "fruitful" and that security cooperation was a significant focus of the deliberations.
"I have focused on economic cooperation in my talks with Prime Minister Modi," he said. Gotabaya said earlier that he would aim to push the bilateral relationship between his country and India to a "very high level." "I want to push the relationship between India and Sri Lanka to a very high level during my term as president. Historically as well as politically, we have a long-standing relationship," Rajapaksa said.</p>

OSL Take: <p align="justify">Sri Lankan President’s discussions with the Indian Prime Minister Narendra Modi has resulted in many positive developments. While the Indian leader’s visit sent the world a message of the close ties between India and Sri Lanka, India also expressed its commitment to the island nation as its development partner. All these would boost confidence levels of foreign businesses looking at entering Sri Lanka’s economy.
Sri Lanka and India boast of strong bilateral and trade ties that have been further supported by the free trade agreement (FTA). Sri Lankan businesses are, therefore, given preferential treatment when engaging in business ventures in India. Local companies could use this benefit to form joint ventures/partnerships with Indian companies. Foreign businesses/investors looking at doing business with India could explore the possibility of setting up base in Sri Lanka to reach out to the Indian market.</p>
VBS/AT/20200106/Z_TB2

No comments:

Post a Comment