PM Modi announces new initiatives to take forward India’s developmental support to Sri Lanka
Development cooperation between India and Sri Lanka is set to get a boost with Prime Minister Narendra Modi and President Anura Kumara Dissanayake deciding to explore new opportunities even while giving a push to existing projects during wide-ranging discussions in New Delhi on Monday (December 16, 2024).

Both sides will work closely in further intensifying the people-oriented development partnership in sectors like housing, renewable energy, and community development projects.

“Today’s talks with President Anura Kumara Dissanayake covered topics such as trade, investment, connectivity and energy. Our nations also look forward to collaborating in sectors such as housing, agriculture, dairy and fisheries,” Prime Minister Modi said on social media platform X. 

“India and Sri Lanka will also work together to strengthen the fight against terrorism and organised crime. Likewise, we will also focus on maritime security, cyber security and disaster relief,” he added. 

Describing the talks as a “new milestone”, the Ministry of External Affairs (MEA) said both sides reviewed the comprehensive India-Sri Lanka partnership and agreed on a roadmap to deepen ties for the mutual benefit of the two countries as well as the region.

New Initiatives to Take Forward India’s Developmental Support
On development cooperation, the two leaders acknowledged the positive and impactful role of India’s development assistance to Sri Lanka that has significantly contributed to its socioeconomic growth. 

“Till date, India has extended grants and Lines of Credit worth USD 5 Billion to Sri Lanka. We have been providing support to all the 25 districts of Sri Lanka. Our projects have always been selected on the basis of developmental priorities of our partner countries,” Prime Minister Modi said at a joint press conference with President Dissanayake. 

PM Modi announced several new initiatives to take forward this developmental support. These include:
1. A grant support towards the rejuvenation of the signalling system of Maho to Anuradhapura Rail Section and Kankesanthurai Port. 
2. Monthly scholarships to 200 students of Jaffna and universities in Sri Lanka's Eastern region.
3. Focused training to 1500 Sri Lankan civil servants across ministries and departments over a period of five years through the National Centre for Good Governance in India.
4. Along with housing, renewable energy and infrastructure, India will also extend its support to Sri Lanka in the sectors of agriculture, dairy and fisheries. 
5. India shall partner for the Unique Digital Identity project in Sri Lanka.

“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,” a joint statement issued after their meeting said. 

India’s Development Assistance to 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.

They also extended full support towards timely implementation of projects for the Indian Origin Tamil community, Eastern Province, and solar electrification of religious places in Sri Lanka.

Additionally, Prime Minister Modi and President Dissanayake decided to identify new projects and areas of cooperation for development partnership, in accordance with the needs and priorities of the Government of Sri Lanka.

Building Connectivity an Important Focus Area
During their talks, the two 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, the joint statement said. 

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.

They also decided to explore the possibility of jointly working on rehabilitation of Kankesanthurai port in Sri Lanka, which will be implemented with grant assistance from the Government of India.

Energy Development Projects Discussed
Emphasising the need for reliable, affordable and timely energy resources for ensuring energy security and meeting basic needs of the people, both leaders underscored the importance of strengthening cooperation in the energy sector and facilitation towards timely implementation of ongoing energy cooperation projects between India and Sri Lanka. 

In this regard, the leaders agreed to:
1. Take steps towards the implementation of the solar power project in Sampur and further augment its capacity as per the requirements of Sri Lanka.
2. Continue consideration of the several proposals which are in different stages of discussion including:
(a) supply of LNG from India to Sri Lanka.
(b) establishment of a high-capacity power grid interconnection between India and Sri Lanka.
(c) cooperation amongst India, Sri Lanka and UAE to implement a multi-product pipeline from India to Sri Lanka for supply of affordable and reliable energy.
(d) joint development of offshore wind power potential in Palk Straits, while prioritizing environmental protection including fauna and flora.

According to the joint statement, Prime Minister Modi and President Dissanayake also discussed the ongoing cooperation in the development of Trincomalee Tank Farms and decided to support the development of Trincomalee as a regional energy and industrial hub.

President Dissanayake, who is on his first overseas visit after assuming office, was earlier accorded a ceremonial welcome by President Droupadi Murmu at Rashtrapati Bhavan. The visiting Sri Lankan President began the day by paying his respects to Mahatma Gandhi at Rajghat.