NEWS

India finalises cooperation plan to revive Covid-hit Sri Lanka economy

WHAT IS THE PLAN

• New Delhi and Colombo have agreed on a four-pronged cooperation package comprising urgent food and health security, energy security, currency swap and Indian investments.
• “Four pillars” for short- and medium-term cooperation:
  • Urgent food and health security package that would envisage an extension of a line of credit to cover the import of food, medicines and other essential items from India to Sri Lanka
  • Energy security package that would include a line of credit to cover the import of fuel from India, and early modernisation of the Trincomalee Tank Farm
  • Offer of a currency swap to help Sri Lanka address its balance of payment issues
  • Facilitation of Indian investments in different sectors that would contribute to growth and expand employment
• Identified ways and means through which the existing bilateral economic relationship between the two countries could be further broadened and deepened
• Agreed that modalities to implement these objectives would be finalised within a mutually agreed timeline.