Thursday, February 27, 2020

India offers $50 million in financial aid to support Sri Lanka’s development


India promised $50 million in assistance to Sri Lanka to help the country buy equipment for its security forces when India's National Security Advisor Ajit Doval called on Saturday for President Gotabaya Rajapaksa.

During the meeting, Doval, who arrived on an official visit in Colombo on Saturday, addressed several bilateral issues and exchanged views with President Rajapaksa on improving bilateral relations in several fields, including reinforcing defence cooperation. The topics discussed included enhancing collaboration between the two countries' security forces, enhancing maritime security, co-operation and interaction between the two countries' coast guards.
"Yesterday, a very cordial discussion took place with India's National Security Adviser, Ajit Doval. Strengthening bilateral cooperation on national security, sharing intelligence, maritime security, and promoting regional collaboration were some of the critical points of discussion, "said the President in a tweet.
Doval pointed out the importance of studying Sri Lanka, Maldives and India's awareness of maritime zones. He also stressed the need for other regional states to take part as observers in this process. He also said that $50 million would give to purchasing equipment for Sri Lankan security forces as part of enhancing security cooperation. India has also committed to helping Sri Lanka collect intelligence information and set up a geo-coordinating centre.
The visit to Sri Lanka by India's top security official follows the appointments of several high-ranking foreign officials this week, including the Chinese and Russian Foreign Ministers and Assistant Secretary of the US Department of State Alice Wells.
OSL Take: The commitment of approximately US $50 million line of credit by India to Sri Lanka indicates the close bilateral ties enjoyed by the two nations. Sri Lanka and India have an active free trade agreement as well. India has played an active role as Sri Lanka’s development partner. Therefore, business opportunities between the two countries are very high.
Foreign businesses/investors interested in doing business with India could look at setting up base in Sri Lanka to get the trade benefits enjoyed by Sri Lankan businesses in India. The ancient ties between the two nations have further strengthened through trade ties that have been benefited by a free trade agreement (FTA) between the two countries. While many Indian companies have formed joint ventures with local businesses, the Indian government has continuously assisted Sri Lanka in its development program.
The strong trade ties between Sri Lanka and India could be beneficial to foreign businesses/investors interested in doing business in the South Asian region as well as India. On the other hand, given Sri Lanka’s continuous efforts to develop its railway sector, foreign companies engaged in rail transport could explore business opportunities in Sri Lanka’s railway sector as well as help build supplementary facilities.
 VBS/AT/27022020/Z_TB3

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