Basil Rajapaksa meets Modi

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By Editor_1
Sri Lankan Finance Minister Basil Rajapaksa with Prime Minister Narendra Modi in New Delhi Wednesday. Sri Lanka’s High Commissioner to India Milinda Moragoda is on left – The Hindu
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By Meera Srinivasan

COLOMBO – Sri Lanka’s Finance Minister Basil Rajapaksa met Indian Prime Minister Narendra Modi in New Delhi Wednesday (16) morning to discuss bilateral matters and further Indian assistance to the island nation which is in the grips of an extraordinary economic crisis.

Sri Lanka’s High Commissioner to India Milinda Moragoda was present at the meeting.

It is widely expected that India will clear a further US$ 1 billion emergency financial support that New Delhi and Colombo have been negotiating since Rajapaksa’s last visit to New Delhi early in December.

At that time, he held talks with External Affairs Minister S. Jaishankar and Finance Minister Nirmala Sitharaman, where both sides agreed on a ‘four-pronged’ approach to addressing Sri Lanka’s meltdown, that included Indian credit lines for import of essentials such as food , medicines and fuel; currency swap to help boost Sri Lanka’s foreign reserves, an “early” modernization project of the Trincomalee oil tank farm, and Colombo’s commitment to facilitate Indian investments in Sri Lanka.

Since January last, India has extended US$ 1.4 billion support, by way of a US$ 400 million RBI currency swap, a $ 500 million loan deferment, and a US$ 500 million Line of Credit for fuel imports. The additional US$ 1 billion, if cleared, will bring some relief to Sri Lanka, amid its current fuel and gas shortages, and soaring prices of food and other basic items.

Between Rajapaksa’s two New Delhi visits in a span of four months, India and Sri Lanka signed key agreements, both at governmental levels and involving private Indian investors. On January 6 last, Indian Oil Corporation subsidiary Lanka IOC, Ceylon Petroleum Corporation and the Government of Sri Lanka signed three agreements to jointly develop the Trincomalee oil tank farm in eastern Sri Lanka.

On March 11, the National Thermal Power Corporation (NTPC) signed an agreement with the Ceylon Electricity Board (CEB) to jointly set up a solar power plant at Sampur in Trincomalee. The same day, the Adani Group signed a deal for setting up two renewable energy projects in northern Sri Lanka, at an estimated cost of US$ 500 million, though this agreement was not publicized by either side.

Rajapaksa was scheduled to meet Jaishankar for a one-on-one interaction later on Wednesday, official sources said.

-The Hindu

 

 

 

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