Three new bilateral agreements signed to foster greater cooperation between the two countries
A slew of new agreements gave a fresh impetus to India’s development partnership with Sri Lanka as External Affairs Minister S Jaishankar met President Ranil Wickremesinghe in Colombo on Wednesday (October 11, 2023)
 
EAM Jaishankar, who was in the Sri Lankan capital to attend the 23rd Council of Ministers’ (COM) meeting of the Indian Ocean Rim Association (IORA), called on President Wickremesinghe at the President’s Secretariat.
 
According to information released by India’s Ministry of External Affairs (MEA), both sides exchanged the following agreements:
 
1. Letter of exchange and acceptance regarding Phase-4 of flagship Indian Housing project for construction of 10,000 houses in the plantation areas. The Indian High Commission in Sri Lanka, 1,300 units are expected to be rolled out soon.
 
2. Infusion of additional funds in nine ongoing High Impact Community Development (HICD) projects. According to the Indian High Commission in Sri Lanka, this is up to the tune of 50%.
 
3. A Joint Venture Shareholders’ agreement between National Dairy and Development Board (NDDB), Gujarat Cooperative Milk Marketing Federation and the Cargills Group of Sri Lanka which will strengthen the Sri Lankan dairy sector.
 
Additionally, the following inaugurations were done virtually at a ceremony presided over by President Wickremesinghe:
 
1. 126 houses in Badulla, Matale and Matara districts under phase-3 of Indian Housing project
 
2. 48 houses in Matale and Puttalam districts under the Model Village Housing project.
 
3. 64 houses in Hambantota and Jaffna districts under Gram Shakthi projects
 
A joint logo was also launched commemorating 75 years of diplomatic relations between the two countries.

This was EAM Jaishankar’s second visit to Sri Lanka in 2023; the first was in when he visited Colombo in January and reiterated India’s commitment to further strengthen its cooperation with Sri Lanka as it recovered from its worst economic crisis in many decades. He had earlier visited Sri Lanka in November 2019, January 2021, and March 2022.
 
INDIA-SRI LANKA TIES SEE AN UPSWING
 
Sri Lanka is an important partner in India’s Neighbourhood First Policy and Vision SAGAR. India and Sri Lanka ties have seen an upswing in recent years, particularly during the economic crisis faced by the island nation. India helped out with humanitarian aid as well as financial assistance.
 
In 2022, India provided unprecedented financial support of USD 4 billion. India was also instrumental in ensuring that Sri Lanka received a bailout package of USD 2.9 billion from the International Monetary Fund (IMF).
 
Sri Lankan Wickremesinghe visited New Delhi in July this year for extensive discussions with Prime Minister Narendra Modi on diverse facets of the bilateral relationship. According to Prime Minister Modi, they agreed to strengthen maritime, air, energy, and people-to-people connectivity and to speed up mutual cooperation in tourism, power, trade, higher education, and skill development.

“We have decided that talks on an economic and technological cooperation agreement will begin soon. This will open up new possibilities in trade and finance for both nations,” he said at a joint press conference with the Sri Lankan President on July 21, 2023.