India Assures Sri Lanka of Continued Support for Debt Restructuring

India has assured Sri Lanka that it will continue to work closely with the island nation on debt restructuring discussions and extend support for the economic recovery. Finance Minister Nirmala Sitharaman made the remarks while addressing the NAAM 200 event organized by the Government of Sri Lanka to commemorate the 200th anniversary of the arrival of India-Origin Tamils IOTs.

India's Unprecedented Financial Assistance to Sri Lanka

Sitharaman highlighted that India rendered unprecedented financial assistance of over USD 4 billion last year when Sri Lanka faced a financial crisis. She emphasized that India felt it was its duty to stand by its friends in Sri Lanka during their time of difficulty. The Indian government and people collectively acted and came to Sri Lanka's assistance in record time.

India's Role in Sri Lanka's Economic Recovery

Sitharaman stated that India was the first bilateral creditor to convey financing assurance to the International Monetary Fund (IMF), which paved the way for others to provide similar assurances that formalized the IMF program for Sri Lanka. India continues to work closely with the Government of Sri Lanka on debt restructuring discussions as well as on its path to economic recovery.

Vision Document for Economic Partnership

The Finance Minister mentioned that India and Sri Lanka have released a vision document for economic partnership in July this year, outlining specific areas of cooperation for sustainable economic development and prosperity for both nations. India will work closely with the Sri Lankan government in realizing the vision provided by the leadership of both countries, with connectivity as a new focus area.

Progress in Connectivity Projects

Sitharaman highlighted that some connectivity projects have already made progress, such as the recent commencement of passenger ferry services and UPI-based digital payments. India is working closely with the government on other identified areas as well.

Importance of Connectivity

The Finance Minister emphasized that as the two nations enhance connectivity, they build enduring bridges of experience and opportunities for their people. India believes in a future with shared prosperity, overcoming the challenges of the past. She expressed confidence that the India-origin Tamils will continue to play an important role in weaving a shared future for both countries.

India's Multi-Pronged Assistance to Sri Lanka

Sitharaman is on a three-day visit to Sri Lanka, which is struggling to come out of the financial crisis that hit the island nation last year. India extended multi-pronged assistance of about USD 4 billion to Sri Lanka last year through multiple credit lines and currency support, in line with India's Neighbourhood First policy.

Indian Housing Project

Speaking about the support being provided to Sri Lanka, Sitharaman mentioned the Indian Housing Project, which is India's flagship development project. Prime Minister Narendra Modi announced an additional 10,000 houses for plantation workers over and above the 4,000 houses under Phase III. The Phase III is nearing completion with 3,700 houses already handed over to the beneficiaries.

Special Grant Package for IOT Community

In July this year, during the visit of President Ranil Wickremesinghe to India, Prime Minister Modi had announced a special grant package of SLR 3 billion INR 75 crore for multi-faceted projects for the IOT community.

India's continued support to Sri Lanka in its economic recovery efforts reflects the strong bond of friendship between the two nations. Through its financial assistance, debt restructuring discussions, and collaboration in various sectors, India is playing a crucial role in helping Sri Lanka overcome its challenges and achieve sustainable economic growth.