‘Prepared to Go The Extra Mile’: India Extends Debt Restructuring Plan to Sri Lanka during Jaishankar’s Visit

edited by: Pathikrit Sen Gupta

Last Update: January 21, 2023, 01:13 AM IST

External Affairs Minister S Jaishankar met Sri Lankan Foreign Minister Ali Sabri in Colombo, Sri Lanka.  (Image: PTI)

External Affairs Minister S Jaishankar met Sri Lankan Foreign Minister Ali Sabri in Colombo, Sri Lanka. (Image: PTI)

While visiting the island nation on January 19-20, the External Affairs Minister met President Ranil Wickremesinghe and Prime Minister Dinesh Gunawardene and held wide-ranging discussions with his counterpart Ali Sabri.

India has extended debt restructuring plan to Sri Lanka. Announcing the development, External Affairs Minister S Jaishankar said that India Sri Lanka was the first creditor nation to support debt restructuring and give financial assurances to the International Monetary Fund to clear the way forward for Sri Lanka and secure the IMF program.

India extended a massive financial aid of USD 4 billion to Sri Lanka last year to tackle its shaky economy. Underlining that India is “ready to go the extra mile if Sri Lanka feels the need”, Jaishankar said India would encourage greater investment in the Sri Lankan economy in several key sectors. “We count on the Government of Sri Lanka to provide a more business-friendly environment to create a powerful pull factor. I am sure the seriousness of the situation has been realized by the policy makers here.

During a press statement with Sri Lankan Foreign Minister Ali Sabri, Jaishankar also said that he raised the issue of special attention to the needs of the Indian-origin Tamil community.

“India has always supported both political and economic stability of Sri Lanka. The President briefed me on the question of political divergence and his thinking. I shared with him my considered view that full implementation of the 13th Amendment and early conduct of provincial elections are important in this regard. Sustained efforts towards reconciliation are in the interest of all sections in Sri Lanka. I also talked about the need to pay special attention to the needs of the Tamil community of Indian origin.

Jaishankar was in Sri Lanka on January 19-20 on his fourth bilateral visit to the island nation as India’s External Affairs Minister. During the visit, he met President Ranil Wickremesinghe and Prime Minister Dinesh Gunawardene and held detailed discussions with his counterpart Ali Sabri. The delegation-level meeting, organized by the Foreign Minister of Sri Lanka, was attended by the Ministers of Ports, Shipping and Aviation, Health, Industry, Investment Promotion, Power and Energy.

Jaishankar stressed that his presence in Sri Lanka at a time when the country is passing through several challenges “sends a clear and strong message of continued support from the government and the people of India to the people of Sri Lanka”.

Sri Lankan President Ranil Wickremesinghe and Jaishankar virtually inaugurated a building for the Kandyan Dancing Academy in Pallekele, the foundation stone of which was laid by the Prime Minister Narendra Modi During his visit to Sri Lanka in May 2017. About 350 housing units constructed with the grant assistance of the Government of India in the districts of Galle, Kandy, Nuwara Eliya, Anuradhapura and Badulla were also handed over in a virtual format on the occasion. Jaishankar formally handed over 50 buses supplied under the line of credit issued for the supply of 500 buses to Sri Lanka’s Transport and Highways Minister Bandula Gunawardene.

The External Affairs Minister appreciated the steps taken to resume Jaffna-Colombo flights and expressed hope that ferry services between India and Sri Lanka would resume at the earliest. India remains the largest source of tourists for Sri Lanka. “Tourism is the lifeblood of Sri Lanka’s economy. I have seen Indian tourists coming here expressing their positive feelings for Sri Lanka in a very practical way. But there are many more steps we can take to make it sustainable. Therefore, strengthening connectivity and promoting travel is a high priority for all of us. Certainly, encouraging Indian tourists to make RuPay payments and use UPI would be most helpful in this regard,” he said.

Jaishankar discussed various measures to promote religious tourism between the two countries, noting that initiatives to promote trade and tourism between the two countries could pave the way for greater people-to-people contact Is. The Minister informed that the Government of India is positively considering the request of the senior Sri Lankan leadership for an exhibition of the sacred Kapilvastu relics of Buddha in Sri Lanka this year.

He congratulated the President of Sri Lanka on behalf of Prime Minister Narendra Modi and extended an invitation on his behalf to visit India at a mutually convenient date. Jaishankar also met former President Mahinda Rajapaksa during the visit.

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