Finance Minister Basil Rajapaksa

External Affairs Minister Dr. S. Jaishankar

Finance Minister Basil Rajapaksa on Saturday firmed up $ 2.4 billion worth of support from India with its External Affairs Minister Dr. S. Jaishankar.

Details of the fresh assistance package were discussed and finalised during their virtual meeting, which was a follow up to Rajapaksa's visit to New Delhi last month.

A statement from the Indian High Commission said both Ministers positively noted the extension of $ 400 million to Sri Lanka under the SAARC currency swap arrangement and deferral of A.C.U. settlement of $ 515.2 million by two months, which would assist Sri Lanka. 

Separately, the two Ministers also reviewed the progress in extending the Indian credit facility of $ 1 billion for importing food, essential items and medicine and $ 500 million for importing fuel from India.

Rajapaksa had recalled India’s longstanding cooperation with Sri Lanka and deeply appreciated the gestures of support. He welcomed Indian investments in Sri Lanka in a number of important spheres, including ports, infrastructure, energy, renewable energy, power and manufacturing, and assured that a conducive environment would be provided to encourage such investments. In this context, both Ministers noted that the recent steps taken by the Government of Sri Lanka for jointly modernising Trincomalee Oil Tank Farms would boost confidence of investors, apart from enhancing Sri Lanka’s energy security.

The Indian External Affairs Minister had brought up the issue of Indian fishermen detained in Sri Lanka. He urged the Government of Sri Lanka to ensure early release of the detained fishermen on humanitarian considerations.

The two Ministers agreed to remain in close touch for guiding mutually beneficial bilateral economic cooperation towards long-term economic partnership for shared progress and prosperity, the Indian High Commission added. 

Dr. Jaishankar had conveyed that India has always stood with Sri Lanka and would continue to support Sri Lanka in all possible ways for overcoming the economic and other challenges posed by COVID-19 pandemic. As close friends and maritime neighbours, both India and Sri Lanka stand to gain from closer economic interlinkages.

Basil assures essential imports whilst servicing debt