India-Sri Lanka development cooperation set to be strengthened as PM Modi, President Dissanayake discuss new opportunities

Development cooperation between India and Sri Lanka is set to gain further impetus with the decision of Prime Minister Narendra Modi and President Anura Kumara Dissanayake to explore new opportunities while giving impetus to existing projects during in-depth discussions at New Delhi Monday December 16. 2024).

The two parties will work closely to further intensify the people-driven development partnership in sectors such as housing, renewable energy and community development projects.

Today's talks with President Anura Kumara Dissanayake covered topics including 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 organized crime. Similarly, we will also focus on maritime security, cybersecurity and disaster relief, he added.

Terming the talks as a new milestone, the Ministry of External Affairs (MEA) said both sides reviewed the India-Sri Lanka Comprehensive Partnership and agreed on a road map to deepen ties in the mutual interest of the two countries as well as the region.

New initiatives to advance support for India's development
On development cooperation, both leaders recognized the positive and impactful role of India's development assistance to Sri Lanka, which has contributed significantly to its socio-economic growth.

To date, India has provided grants and lines of credit worth $5 billion to Sri Lanka. We provide support to all 25 districts of Sri Lanka. Our projects have always been selected based on the development priorities of our partner countries, Prime Minister Modi said at a joint press conference with President Dissanayake.

Prime Minister Modi announced several new initiatives to advance this support for development. These include:
1. A grant for the rejuvenation of the signaling system from Maho to the Anuradhapura railway section and Kankesanthurai port.
2. Monthly scholarships awarded to 200 students from Jaffna and universities in the Eastern region of Sri Lanka.
3. Targeted training for 1,500 Sri Lankan civil servants from all ministries and departments over a period of five years through the National Center for Good Governance in India.
4. Apart from housing, renewable energy and infrastructure, India will also extend its support to Sri Lanka in the agriculture, dairy and fisheries sectors.
5. India will join Sri Lanka's single digital identity project.

President Disanayaka appreciated India's continued support for project implementation despite ongoing debt restructuring. He further acknowledged India's decision to extend grant assistance to projects initially undertaken through lines of credit, thereby reducing Sri Lanka's debt burden, according to a joint statement issued at the end of their meeting.

India's development assistance to Sri Lanka
Reaffirming their commitment to work closely to further intensify the people-centered development partnership, the two leaders agreed to work together for the timely completion of ongoing projects such as Phase III and IV of the Housing Project Indian, the 3 (three) island hybrid renewable energy project and the high energy project. Impacting community development projects across Sri Lanka.

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

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

Building connectivity, an important focus area
During their talks, the two leaders highlighted the importance of greater connectivity and recognized the existence of complementarities between the two economies which could be harnessed for the economic development and growth of both countries, the statement said common.

While expressing satisfaction over the resumption of passenger ferry service between Nagapattinam and Kankesanthurai, they agreed that officials should work towards early resumption of passenger ferry service between Rameshwaram and Talaimannar.

They also decided to explore the possibility of jointly working on the rehabilitation of Kankesanthurai Port in Sri Lanka, which will be implemented through a grant from the Indian government.

Energy development projects discussed
Stressing the need for reliable, affordable and timely energy resources to ensure energy security and meet people's basic needs, the two leaders stressed the importance of strengthening cooperation in the energy sector and facilitating implementation timely announcement of ongoing energy cooperation projects between India and Sri Lanka. .

In this regard, the leaders agreed to:
1. Take steps for the implementation of the solar power project in Sampur and further increase its capacity in accordance with the needs of Sri Lanka.
2. Continue examining the various proposals which are at different stages of discussion, in particular:
a) supply of LNG from India to Sri Lanka.
(b) the establishment of a high capacity electricity grid interconnection between India and Sri Lanka.
(c) cooperation between India, Sri Lanka and the United Arab Emirates to implement a multi-product pipeline between India and Sri Lanka for the provision of reliable and affordable energy.
(d) joint development of the potential of offshore wind energy in the Palk Strait, while prioritizing the protection of the environment, in particular of 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 foreign visit after assuming office, was earlier welcomed by President Droupadi Murmu at Rashtrapati Bhavan. The visiting Sri Lankan President began the day by paying homage to Mahatma Gandhi at Rajghat.