Published on: December 6, 2021

INDIA – SRI LANKA ECONOMIC COOPERATION

INDIA – SRI LANKA ECONOMIC COOPERATION

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http://aqualliance.net/cgialfa 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.