S Jaishankar: India To Uplift Greater Investments In Sri Lanka’s Economy

India will encourage greater investments in Sri Lanka’s economy, particularly in energy, tourism and infrastructure development, India’s External Affairs Minister S Jaishankar said on Friday.

 

S Jaishankar tweeted, “A good meeting with Foreign Minister Ali Sabry and other ministerial colleagues this evening in Colombo. Discussed India-Sri Lanka cooperation in infrastructure, connectivity, energy, industry and health,” through his Twitter handle.

“India will encourage greater investments in the Sri Lankan economy, especially in the core areas like energy, tourism and infrastructure. We count on the Government of Sri Lanka to provide a more business-friendly environment to create a powerful pull factor. I am confident that the gravity of the situation is realized by policymakers here,” S Jaishankar said.

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“My primary purpose to visit Colombo is to express India’s solidarity with Sri Lanka during these difficult moments,” S Jaishankar added.

External Affairs Minister is on a two-day official visit to Colombo, told media that India is counting on Sri Lankan authorities’ facilitating a more business-friendly environment.

India’s strategic interest in Sri Lanka’s energy sector has been controversial particularly in renewable energy.

“Only then will Sri Lanka get the full benefit of scale. This country has enormous renewable energy potential that can become a sustainable source of revenue. It has the capability as well for Trincomalee to emerge as an energy hub. In its support for Sri Lanka, India is prepared to be a reliable partner on such initiatives. We have today agreed in-principle on a renewable energy framework that would take this cooperation forward,” Minister said.

The two countries have been discussing the establishment of a refinery at the Trincomalee Port. Publicly traded Lanka IOC, a unit of Indian Oil Corporation and state-run Ceylon Petroleum Corporation own 49/51 percent stakes in Trinco Petroleum Terminal Ltd, which control 51 tanks in a World War Ii era tank farm by the Trincomallee Port.

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The Indian foreign minister also called for strengthened connectivity between the two South Asian nations to promote travel as a high priority.

“In a turbulent world, it is essential that India and Sri Lanka steady their trade. The use of rupee settlement for trade is obviously in our mutual interest,” he said.

S Jaishankar said India felt strongly that Sri Lanka’s creditors must take proactive steps to facilitate its recovery, commenting on the Indian finance ministry’s letter to the International Monetary Fund on Sri Lanka.

India decided not to wait on others but to do what we believe is right. We extended financing assurances to the International Monetary Fund (IMF) to clear the way for Sri Lanka to move forward.

“Our expectation is that this will not only strengthen Sri Lanka’s position but ensure that all bilateral creditors are dealt with equally,” he said.

Mr. S Jaishankar said, the decision was a reassertion of India’s belief in the principle of “neighbourhood first”, and “not leaving a partner to fend for themselves,” which also drove the nearly-4 billion dollar assistance extended last year, by way of credits and roll overs. India is “a reliable neighbour, a trustworthy partner, one who is prepared to go the extra mile when Sri Lanka feels the need”, he said and extended Prime Minister Narendra Modi’s invitation to Mr. Wickremesinghe to visit India at an “early date”.