Tuesday, October 20, 2020

Sri Lanka and India to boost trade and investment activity amidst COVID-19 challenges

 


On Saturday, in the light of the difficulties posed by the COVID-19 pandemic, Sri Lanka and India pledged to work to foster an enabling climate for trade and investment between the two countries and deepen the integration of supply chains. Sri Lanka and India have agreed to work towards the early realisation of infrastructure and connectivity projects in the ports and energy sectors through close consultations under the Bilateral Agreements and MoUs and a strong commitment to a mutually beneficial partnership in development cooperation.

Among a host of other issues discussed by Indian Prime Minister Narendra Modi and Prime Minister Mahinda Rajapaksa during a virtual summit on Saturday were economic issues. The report claimed that Modi called on the Government of Sri Lanka to address the Tamil people's aspirations for equality, justice, peace, and respect within a united Sri Lanka, including pursuing the reconciliation process with the adoption of the 13th Amendment to the Sri Lankan Constitution.

In response, Rajapaksa expressed trust that Sri Lanka will strive to meet the wishes of all ethnic groups, including Tamils, by achieving reconciliation under the mandate of the citizens of Sri Lanka and by enforcing the provisions of the Constitution.  Both leaders recalled the active state visits to India in November 2019 and February of this year by President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa, respectively, stating that these visits offered a healthy political path and vision for the relationship's future.

The two leaders have agreed to reinforce technical cooperation in agriculture, animal husbandry, science and technology, healthcare, and AYUSH (Ayurveda, Unani, Siddha, and homoeopathy). Further, they have agreed to reinforce technical skills growth through expanded professional preparation, thereby realising the full potential of both countries' demographic dividends. They also agreed to improve people-to-people relations by discussing opportunities such as Buddhism, Ayurveda, and yoga in civilisational links and shared heritage. The Indian Government will facilitate the visit of a Buddhist pilgrim delegation from Sri Lanka on the inaugural international flight to the holy city of Kushinagar, recently declared as an international airport acknowledging its importance in Buddhism.

Prime Minister Rajapaksa welcomed Prime Minister Modi's announcement of a $15 million grant from India to foster Buddhist relations between the two countries. The donation will help to deepen people-to-people ties between the two countries in the Buddhist sphere, including through the construction/renovation of Buddhist monasteries, capability growth, cultural exchanges, archaeological cooperation, and mutual exposure of Buddha's relics, among other things.

OSL Take: The meeting between the Indian Prime Minister Narendra Modi and Sri Lankan Premier 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 it's a development partner. All these would boost confidence levels of foreign businesses looking at entering Sri Lanka's economy.

 VBS/AT/20102020/Z_4TB

 

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