Briefing the press on President Anura Kumara Dissanayake’s State visit to India, Indian Foreign Secretary Vikram Misri said Prime Minister Narendra Modi affirmed India’s continued commitment to support Sri Lanka in its economic stabilisation efforts for its economic recovery and economic growth.
Premier Modi also assured President Anura Kumara Dissanayake that India’s approach would be investment-based and grant-oriented to reduce the debt burden on Sri Lanka and to assist them in generating economic opportunities that are long-term and sustainable and will eventually contribute to growing the absolute size of the Sri Lankan economy.
Addressing the special press briefing on the State visit of President Dissanayake to India, the Foreign Secretary said the two countries, close as they are, are also pursuing various connectivity measures. “We have enhanced our air and maritime connectivity and we are now working on several projects related to energy connectivity through, for instance, plans for inter-grid connectivity, a multi-product petroleum pipeline between the two countries, supply of LNG, and the under-preparation Sampur Power project. Moreover, there is digital connectivity and this has taken a significant step forward through the introduction of Universal Payment Interface (UPI) services in Sri Lanka.”
He said the visit of President Dissanayake aimed to expand this very robust partnership and take its frontiers even further. He thanked India for its instrumental role in finalising the debt restructuring and the provision of grant assistance to undertake development projects in Sri Lanka. In particular, he thanked India for its decision to extend US$ 20.66 million as grant assistance to settle the payments related to seven completed line-of-credit projects in Sri Lanka.
President Anura Kumara Dissanayake with Indian Prime Minister Narendra Modi
These were projects that were pursued under a loan agreement, but in view of the ongoing situation, it was decided by India to convert the repayments due under this line-of-credit into a grant. Similarly, there is another grant assistance project that has been announced of US$ 61.5 million towards the rehabilitation of Kankesanthurai Port in the Northern Province. This is also something that was to be executed through a line-of-credit, but will now be executed through a grant.
Both leaders have also adopted an India-Sri Lanka joint statement fostering partnerships for a shared future, providing a framework to strengthen the comprehensive bilateral partnership across several sectors, and these sectors include Parliamentary Exchanges, Development Cooperation, Debt Restructuring, Energy Cooperation, Trade and Investment Cooperation, Strategic and Defense Engagement, issues related to fishermen, among others.
The joint statement will provide guidance for the relationship that is future-oriented and at the same time people-centric. The document also aims to bring together the several ways in which India can support Sri Lanka’s economic recovery and have the partnership deliver prosperity for people in both countries, he said.
Misri said: “We have announced grant assistance of US$ 14.9 million to undertake a Signalling System in the Maho Anuradhapura segment of Sri Lanka railways, thereby deepening our cooperation on the infrastructure-related front. In addition to the already extensive scholarship programs that we offer in Sri Lanka, we have announced a comprehensive scholarship program for 100 students each from economically disadvantaged sections to the University of Jaffna and to the Eastern University. The scholarship is intended to take care of the needs of the students for the entire duration of their studies. Similarly, today an MoU was exchanged to train 1,500 Sri Lankan civil service officers over five years. This is an MoU that has been signed between the National Centre for Good Governance in India and the Sri Lankan Institute for Development Administration.”
In line with the Sri Lankan Government’s emphasis on transforming governance through digitisation, something that President Dissanayake expressed very keen interest in and something that he’s committed to, in a sense, taking forward in Sri Lanka, learning from India’s own achievements and experiences in this regard. Both leaders agreed to expedite the implementation of the India-funded grant project of Sri Lanka Unique Digital Identity that will support Sri Lanka in setting up its own foundational digital ID program and platform, much like India’s Aadhaar. As mentioned earlier that we have already launched UPI in Sri Lanka for the use of Indian tourists since February 2024.
“You are aware that the issue of fishermen is a particularly important one for both countries. The leaders had extensive discussions on this issue and agreed that issues related to fishermen must be dealt with through a humane and humanitarian perspective. These are issues related to livelihood and it was agreed that the use of force must be avoided under all circumstances.”
The Indian Foreign Secretary said the two leaders also had a detailed conversation on promoting reconciliation in Sri Lanka. The Prime Minister called upon President Dissanayake for a full and effective implementation of the Sri Lankan Constitution for meaningful devolution and for holding Provincial Council Elections at the earliest. The engagements and the conversations today between the leaders have further deepened mutual understanding of each other’s interests, sensitivities and concerns, adding to the mutual trust and goodwill at the political level.
Sri Lanka is India’s closest maritime neighbour and has been an integral part of India’s Neighbourhood First Policy and India’s Vision SAGAR. The two countries are civilisational partners with a unique friendship and India has time and again demonstrated that it is a dependable partner and a reliable friend for Sri Lanka. Whether it is disasters, mishaps at sea, the Covid-19 pandemic or indeed the very serious economic crisis that confronted Sri Lanka just a couple of years ago, India has been present in the role of a first responder, he said.
He said, “Our support has been timely, swift and most importantly unconditional, underlining our position as a responsible and friendly neighbour of Sri Lanka. President Dissanayake in fact acknowledged the same during the discussions with the Prime Minister and thanked the Prime Minister for India’s support, especially the crucial assistance in the form of nearly US$ 4 billion in various kinds of aid in 2022 and 2023, which helped stabilise Sri Lanka’s economy at a critical juncture. India remains involved in this financial stabilisation effort for Sri Lanka through its engagement with the IMF, which is undertaking a program for Sri Lanka following the debt restructuring that has been agreed.”
“You are probably also aware that India is the co-chair of the Official Creditors Committee (OCC) and in that role also continues to play an important role in assisting Sri Lanka through this challenging phase. In recent years, India has also been Sri Lanka’s largest trade partner. We are Sri Lanka’s largest source of tourists. We also happen to be Sri Lanka’s largest source of investment. Sri Lanka is also one of the largest beneficiaries of our developmental cooperation program and the recipient of several capacity building initiatives.”
“I would say that the engagement and the outcomes during this visit have provided new momentum to our ongoing cooperation. In the coming months and years, we look forward to practically translating these into concrete actions for the benefit of the relationship. Let me also add that President Dissanayake, while expressing his gratitude for the warm welcome and the hospitality that he had received here, extended an invitation to the Prime Minister to visit Sri Lanka. The Prime Minister accepted the invitation. It is understood that the dates for such a visit will be worked out through diplomatic channels,” he said.
Here are some of the answers given by the Indian Foreign Secretary to the questions raised by the Indian journalists at the press briefing.
Q: Were there any discussions where Sri Lanka asked India to help them restructure the debt they are already in from international bodies or other third parties? Has there been any discussion where India can play a role in helping Sri Lanka to get loans restructured?
A: India is the co-chair of the OCC and has been playing an important role in ensuring that the arrangements that are arrived at for restructuring the debt are equitable arrangements that meet the needs of all parties concerned. In fact, the Sri Lankan President thanked India for the help that we have already extended. There are negotiations that are currently going on between India, between Sri Lanka and the international sovereign bond holders who actually hold a considerable portion of the Sri Lankan debt. There too, India is playing a constructive role, a role that the Sri Lankan Government has appreciated. We expect that we will remain in close touch with Sri Lanka on these issues. The IMF program is under way.
As the Prime Minister said on several occasions to President Dissanayake, India is interested in seeing Sri Lanka succeed. A very important part of that success is going to be for Sri Lanka to come out of this current phase where it is addressing these debt-related issues and to get into the territory of significant economic growth. We will remain engaged with Sri Lanka on these issues.
Q: Whether there were any discussions on berthing of research vessels at Sri Lankan Ports and whether the Sri Lankan Government has extended its moratorium that it had for 2024 by another year. Is there any sense of this?
A: Our understanding is that the Sri Lankan Government is looking at this issue. There are a number of considerations that they need to take into account. We did highlight from our perspective the role that India could play in a number of activities related to Maritime Security and Maritime Research. We stressed the importance and the sensitivity of our security interests in this area. President Dissanayake was very upfront in saying that he would ensure that nothing was done by using Sri Lankan territory that might impact India’s security.
Q: Were there any discussions on the regional and the international issues?
A: There were a few references to Sri Lanka’s desire to be part of multilateral organisations. You are aware that Sri Lanka has previously expressed interest in becoming a member of BRICS and you would also be aware that currently there are no new members being considered by BRICS in addition to the ones that were already on the anvil since last year. But as and when there is a consensus within BRICS to start looking at new members, we will certainly take into account the interest that has been expressed by Sri Lanka.
Q: Were there any conversations on the Ramayana Trail and the land bridge? Were there any conversations on the Adani investments in the Western Terminal of the Colombo Port given that there has been certain controversy when it comes to Adani’s investments?
A: This is something that was communicated by the Prime Minister to President Dissanayake. The question on the Ramayana, it did definitely come up in the context of not just the civilisational relationship between the two countries, but also in terms of the tourism potential that exists and this is something that is a big draw for Indian tourists. Therefore, there was a discussion on how we could promote the Ramayana Trail in Sri Lanka and the Buddhism trail in India to mutually grow tourism in both directions. Some of these questions related to the investment in the Colombo West terminal and the review of wind power projects, but there was no detailed discussion on these issues.
Q: It has been said in the President’s statement that he is inviting Prime Minister Modi. Is the invitation for a specific date or occasion? And has there been any talk of tourist related and visa rules changes?
A: The invitation extended by President Dissanayake to the Prime Minister, is in a way that in such visits, such invitations are formally exchanged. But we will have to see when it will be possible and it will happen next year only. This will be discussed in diplomatic channels and the decision will be taken on the date which is convenient. There was also a discussion about tourism. India is the biggest source of tourism for Sri Lanka and there was a discussion about the facilities that can be provided there to boost tourism. After the introduction of UPI, the convenience for Indian tourists has increased there. So, it is expected that tourism from India will increase. There were also discussions on visa related issues as to how visa convenience can be provided in both directions.
Q: If you could just give a sense of the Sri Lankan side’s response to our raising the issue of Tamils and the holding of Provincial Council elections and ensuring the rights of the Tamil minority.
A: The discussions related to the issue of interest of the Tamil community in Sri Lanka, this has been an issue on which we have long held discussions and exchanges with authorities in Sri Lanka. President Dissanayake himself, during his election campaign and thereafter, has referred to his plans on this particular subject. He did in fact draw attention during the discussions on several occasions, to the mandate that he has received. He has received support from all corners of the country. Therefore, there is an expectation now from him to respond to those expectations. We welcome the fact that the President has referred to issues related to Provincial Councils Elections. These are important markers in terms of a solution or an approach to the ethnic issue.
Q: When the President was making his statement, he had given some suggestions on the issue of fishermen, that the boats should not be used in that way. So, what was that and what was India’s stand on it?
A: What the President meant was that Sri Lanka’s approach has been that bottom trawling should not be used because it is a harmful practice. So, in my opinion, he was saying that this problem of fishermen should be solved by both the countries together. Recently, the Joint Working Group on Fisheries has taken place between the two countries.
Q: You spoke about the discussion over BRICS and President Dissanayake had said it in his own statement as well. Has India discussed Sri Lanka’s application to join the Regional Comprehensive Economic Partnership (RCEP) trading bloc?
A: On BRICS, I have already said what the stance is insofar as India is concerned. As RCEP is concerned, I must admit I haven’t seen any report related to Sri Lanka intending to join RCEP. But our stance on RCEP is well known and I don’t have to repeat it here. Any trading bloc comes with its own features in multiple areas, not least in the area of rules of origin. We already have a Free Trade Agreement (FTA) with Sri Lanka. We will have to see what the impact on that particular free trade area will be.
Follow the link to the special briefing by MEA on the State visit of the President of Sri Lanka to India (December 16, 2024)
