Indian parliamentary committee urges strong support for SL amidst crisis

Friday, 28 July 2023 02:20 - - {{hitsCtrl.values.hits}}

Says India must be SL’s biggest friend in times of crisis
Suggested India should extend Lines of Credit, Currency Swaps and other support
Asks Indian Govt. to facilitate public and private investments in SL
Proposes resumption of ECTA discussions

By Maneshka Borham

An Indian parliamentary standing committee on external affairs has recommended the Indian Government take steps to bolster its Neighbourhood First policy and be Sri Lanka’s ‘biggest friend in times of crisis’.

In a report presented to the Indian parliament on Wednesday, the committee suggested that the Indian Government extend favourable Lines of Credit, currency swaps, and other financial support to Sri Lanka, considering the country›s ongoing financial crisis.

It also proposed that the Indian Government should facilitate Indian public and private sector companies to invest in projects and commence business in Sri Lanka as investment-led growth is the most sustainable pathway for Sri Lanka to recover economically. Furthermore, the committee urged the Government to resume negotiations for the proposed Economic and Technology Cooperation Agreement (ETCA) with Sri Lanka. According to the report, as of September 2018, eleven rounds of talks on ECTA have already been completed, and Sri Lanka has expressed its willingness to recommence the negotiations.

The committee also emphasised that the Indian Government should take a proactive stance in advocating the necessity of supporting Sri Lanka at the International Monetary Fund (IMF) to other countries.

The committee took note of the economic uncertainty and severe shortage of foreign exchange in Sri Lanka, which has significantly impacted India›s major exports to the country. In light of this, the committee suggested that the Ministry of External Affairs should adopt a more proactive approach to resolving all pending issues and aim to facilitate a substantial increase in Indian exports to Sri Lanka.

Commenting on the persistent issues concerning fishermen between the two nations, the report emphasised the need for meaningful dialogues. It called for constructive discussions to be held, aiming for a permanent resolution that is approached in a humanitarian manner.