India-Sri Lanka ties strengthen with $5 billion aid and strategic commitments

Anura Kumara Dissanayake, Sri Lanka’s President, visited New Delhi on his first official bilateral trip following decisive victories in the nation’s presidential and parliamentary elections.

During a joint press briefing on Dec 16, President Anura Kumara Dissanayake extended heartfelt thanks to India for its timely economic support during Sri Lanka’s financial turmoil and assistance in debt restructuring efforts.

Reflecting on the crisis that gripped the island nation two years ago, he remarked, “We faced an unprecedented economic crisis some two years ago, and India supported us immensely to come out of that quagmire. It has also helped us immensely after that, especially in the debt-free structuring process.”

Prime Minister Narendra Modi reaffirmed India’s commitment to Sri Lanka’s development, stating that all bilateral projects are aligned with Colombo’s priorities. "India has so far provided 5 billion dollars in line of credit and grant assistance to Sri Lanka. We have cooperation in all 25 districts of Sri Lanka," PM Modi highlighted.

PM Modi announced a series of new initiatives, including the rehabilitation of the Maho-Anuradhapura railway signalling system and upgrades to Kankesanthurai Port.

Additionally, India will award monthly scholarships to 200 university students from Jaffna and the Eastern Province.

India also pledged to train 1,500 Sri Lankan civil servants over the next five years, underscoring its long-term development partnership.

"Along with housing, renewable energy, and infrastructure, India will also cooperate for the development of agriculture, dairy, and fisheries in Sri Lanka. India will also participate in the unique digital identity project in Sri Lanka," added PM Modi.

President Dissanayake assured that Sri Lanka’s territory would not be used in any manner harmful to India’s interests. “PM Modi assured us full support and he also assured us that he will always protect the territorial integrity and sovereignty of Sri Lanka," he said.

Looking ahead, PM Modi announced plans to finalize a defence cooperation agreement with Sri Lanka. "Cooperation on hydrography has also been agreed upon. We believe that the Colombo Security Conclave is an important platform for regional peace, security, and development. Under this, cooperation will be enhanced on topics like maritime security, counter-terrorism, cyber-security, anti-smuggling operations, humanitarian aid, and disaster relief," he added.