Modi, Rajapaksa Agree to Speed up Development Projects in Sri Lanka
Sri Lankan request for a currency swap arrangement to the tune of $1.1 billion has been agreed to by India. This fund is required for easing pressures related to foreign currency reserves — seen as a fallout of the covid-19 pandemic. The tourism industry in the island nation has been completely devastated.
This new request of $1.1 billion is separate from another for $ 400 million being negotiated between the two countries under the South Asian Association for Regional Cooperation (SAARC) framework.
Sri Lankan President Gotabaya Rajapaksa put forth the request during a telephone conversation with Indian Prime Minister Narendra Modi on Saturday, a statement from Rajapaksa’s office said. The conversation was described as “very constructive and cordial.”
Sri Lanka’s economy has been hit by the Wuhan Virus crisis with tourism — a major foriegn currency earner — drying up completely. So far India has sent consignments of medicines to Sri Lanka.
The “President speaking from the Presidential Secretariat, appreciated the opportunity to discuss matters of mutual interest with the Indian Premier and thanked him for the support extended by India to help Sri Lanka face these difficult times. India’s gift of 10 tonnes of medical supplies proved to be very useful, said the President in appreciation,” the statement from Colombo said.
President Rajapaksa sought the intervention of Prime minister Modi to revive some of the key projects as Sri Lanka strives to restore the economy, the statement said.
Rajapaksa asked prime minister Modi to “direct those responsible from India’s side to expedite construction of the East Terminal of the Colombo Port as early as possible as it will be a significant boost to our economic landscape,” the statement quoted the Sri Lankan President as saying.
“I am trying to promote value added industrial and agricultural activities,” the president said adding he would be “happy if you could encourage Indian investors to start such investments, including Indian companies already in Sri Lanka to increase domestic value addition in the context of COVID-19 economic priorities.”
Modi on his part assured Rajapaksa that he was personally committed to help Sri Lanka. “We are ready to help under terms that are favorable to Sri Lanka,” Modi was quoted as saying by the Sri Lanka statement.
Modi also suggested to President to appoint an official to work directly on this regard with the Colombo based Indian High Commissioner Gopal Baglay, the statement added.
India has traditionally considered the Indian Ocean region and countries in its immediate neighbourhood as within its sphere of influence.
Though China is now increasingly trying to make its presence felt in the Indian Ocean region through its investments. It is also sending its naval ships into IOR, though in a conflict situation they will stand nowhere against the Indian Navy.
However as a tactics China has been steadily increasing fishing as well as other economic activities in the Indian Ocean region particularly along the east coast of Africa — developments that India has started keeping an eye on.
Prime Minister Narendra Modi and President Gotabaya Rajapaksa also agreed to the possibility of promoting investments by India’s private sector. Rajapaksa also briefed Modi on steps being taken by his government to restart economic activity.
“In this context, both leaders agreed on the need to accelerate Indian-assisted development projects in Sri Lanka. They also discussed the possibilities of promoting investments and value-addition in Sri Lanka by the Indian private sector,” the external affairs ministry said.
Modi assured Rajapaksa that India will continue to provide all possible support to Sri Lanka for mitigating the impact of the pandemic.
The Indian prime minister also had a telephone conversation with his counterpart in Mauritius, Pravind Jugnauth, and discussed enhancing cooperation in several areas, including measures to support the financial sector of Mauritius.
Jugnauth conveyed his condolences for losses caused by cyclone Amphan in India and thanked Modi for sending the Indian warship INS Kesari to Mauritius with a consignment of medicines and a 14-member medical team to help health authorities fight the Covid-19 pandemic.
Kesari arrived in Port Louis on Saturday with a second consignment of essential medicines, which were received by health minister Kailesh Jagutpal. The shipment includes 10 tonnes of Ayurvedic medicines. The Indian medical assistance team that arrived on board Kesari includes a community medicine specialist, a pulmonologist and an anaesthesiologist. The supply of medicines and the team was arranged at the request of the government of Mauritius.
The first consignment of 13 tonnes of essential medicines from India, including 500,000 hydroxychloroquine tablets, arrived on a special Air India flight on April 15.
Modi conveyed his appreciation for the Covid-19 response mounted by Mauritius, which has resulted in no new cases being reported for several weeks. He said Mauritius should document its best practices, which will be helpful for other countries.
