NEW DELHI (AP) – Sri Lanka and India signed a series of energy, development and trade agreements yesterday signaling growing economic ties between the neighbouring countries.
Sri Lankan President Ranil Wickremesinghe arrived in New Delhi a day earlier for the official visit, his first since taking up the top job last year after an economic meltdown forced his predecessor to flee. He held talks with Indian Prime Minister Narendra Modi and the two leaders unveiled agreements on technology, renewable energy and greater connectivity designed to deepen bilateral relations between India and Sri Lanka.
“My visit to India has provided an opportunity to review our bilateral relationship, leverage the strength of geographical and civilisational links, reinforced trust and confidence for our future prosperity in the modern world,” Wickremesinghe said.
Modi said the two leaders adopted a vision to boost their economic cooperation, including strengthening maritime, air and energy connectivity between their citizens and accelerating mutual cooperation in tourism, trade and higher education.
“The past one year has been full of challenges for the people of Sri Lanka. Being a close friend, as always, we stand shoulder-to-shoulder with the people of Sri Lanka,” Modi said in his remarks. Relations between the two countries surged last year when Sri Lanka was mired in its worst economic crisis in modern history, triggered by a severe foreign currency crunch that saw essential items run out and citizens queue for fuel for days.
It also suspended its repayment of foreign debt last year. India provided critical financial and humanitarian assistance worth over USD4 billion to its neighbour including food, medicine and fuel, aimed at injecting much-needed stability as its bankrupt neighbour battled outstanding total debt of over USD83 billion, of which USD41.5 billion was foreign.
It was also the first creditor to extend a letter of support towards Sri Lanka’s debt restructuring efforts that helped kickstart support from the International Monetary Fund, which approved a USD3 billion bailout package in March.
