India – Sri Lanka to Expand Economic Partnership
Manas Dasgupta
NEW DELHI, July 21: India and Sri Lanka on Friday adopted an ambitious vision document to significantly expand economic partnership after wide-ranging talks between Prime Minister Narendra Modi and Sri Lankan President Ranil Wickremesinghe.
In his media statement, Modi, referring to the economic difficulties in Sri Lanka last year, said India stood “shoulder-to-shoulder” with the people of the island nation during the crisis as a close friend. The prime minister said firming up of an agreement for launch of the UPI payment system in Sri Lanka will result in fintech connectivity between the two sides.
President Wickremesinghe expressed his government’s “profound appreciation” for the support that India extended to Sri Lanka over the last year which he described as the “most challenging period in Sri Lanka’s modern history.” The past one year has been full of challenges for the people of Sri Lanka, he said, adding that being a close friend, as always, India stands shoulder-to-shoulder with the people of Sri Lanka.
Modi also said India expected Sri Lanka to implement the 13th Amendment and ensure a life of “dignity and respect” for its Tamil population. Modi informed that both sides have held talks on a number of infrastructure projects that can ensure greater connectivity between the two countries and announced a development assistance package for the Tamils of Indian origin who are marking 200th anniversary of their arrival into the island nation.
“We took up the issue of reconstruction and reconciliation in Sri Lanka. President Wickremesinghe presented his inclusive point of view to me. We hope that Sri Lanka’s government will fulfil the aspirations of the Tamil people. We expect that Colombo will take forward the process of reconstruction for ensuring equality, justice and peace. We hope that Sri Lanka will fulfil its commitment to implement the 13th Amendment and to hold provincial elections,” said Modi delivering his remarks in Hindi.
Modi said the security interests and development of India and Sri Lanka were intertwined and it was necessary to work together keeping in mind each other’s security interests and sensitivities. Modi said the vision document for economic partnership was adopted to accelerate mutual cooperation in areas of tourism, power, trade, higher education, skill development and connectivity. The vision is to strengthen maritime, air, energy and people-to-people connectivity between the people of both the countries, he said.
Modi also said it was decided that talks would start soon on an agreement on economic and technological cooperation. He said a feasibility study would be conducted on the India-Sri Lanka petroleum pipeline.
Modi and Wickremesinghe spoke at the end of bilateral talks held at the Hyderabad House where the two sides exchanged documents on cooperation in the field of animal husbandry, renewable energy, development projects in Trincomalee district in eastern Sri Lanka, and online payment services between the two sides.
The 13th Amendment is a three-decade-old Sri Lankan legislation that pledged devolution of power to the nine provinces which is yet to be fulfilled. Two days before the arrival of President Wickremesinghe to India, the issue came to the centre stage after the Tamil National Alliance (TNA) “categorically rejected” the promise of the present government to implement the amendment sans police powers. The TNA has described the move as “another hollow promise” by the Wickremesinghe-led government.
Modi announced a package of ₹75 crores for various development projects in the northern and eastern part of Sri Lanka. Modi noted the financial difficulty that Sri Lanka has been facing since last summer when the country was brought to a standstill by an unprecedented energy crisis which was accompanied by high inflation and near depletion of its foreign currency reserve.
Modi announced that a passenger ferry service would be launched soon to connect Tamil Nadu’s Nagapattinam and northern Sri Lanka’s Kankesanthurai. “We have decided to fast-track the work of connecting the electricity grids of both countries,” announced Modi.
Conveying his commitment to the development of Sri Lanka, Wickremesinghe said his plan would “benefit all segments of Sri Lankan society” and added, “I have set Sri Lanka firmly on the path of economic reform and that Sri Lanka is already witnessing the stabilising outcomes of these measures and the revival of confidence internally and externally in the progress of the country.”
Wickremesinghe said he has invited leaders of all political parties to come forward to work towards “consensus.” The visiting President said Sri Lanka is focused on an economic growth path. He welcomed the Chennai-Jaffna air connectivity.
