Colombo: India Tuesday expressed hope that Sri Lanka would soon achieve early economic recovery, with the Indian Deputy High Commissioner here, reaffirming New Delhi’s steadfast support to the island nation through the crisis.
Sri Lanka has been struck by a catastrophic economic and humanitarian crisis sparked by years of mismanagement and the raging pandemic.
Vinod K Jacob, the Deputy High Commissioner of India, speaking at the Coordination Forum of Development Partners of Sri Lanka, said that “India had steadfastly supported the people of Sri Lanka through the economic crisis as well as at the IMF,” a press release by the Indian High Commission in Colombo said.
Jacob expressed hope that Sri Lanka will achieve early economic recovery.
Explaining the flagship development cooperation partnership between Delhi and Colombo, the Deputy High Commissioner said that the engagement was based on the principles of South-South cooperation between friendly neighbours.
“The projects are selected in line with the priorities of the Sri Lankan side and pertain to socio-economic sectors,” the press release said.
According to the press release, the total development cooperation portfolio between the two neighbours stands at $ 600 million, and in the past eight years, more than 20 projects have been completed.
Jacob emphasised the reliance of Indian projects on Sri Lankan partners for the supply of locally available and environmentally sustainable materials, calling it a “unique characteristic”.
Elaborating on the challenges faced for the completion of projects, Jacob pointed out that during the past few years, import restrictions and capacity issues have impacted the pace of execution.
“India remains confident of jointly resolving these concerns with the Sri Lankan side,” the press release quoted him as saying.
India has extended lines of credit worth over $ 4 billion to Sri Lanka in diverse sectors, including the supply of essential items, petroleum, fertilisers, development of railways, infrastructure, defence sector and renewable energy, according to the Indian High Commission here.
The Indian Oil Company’s local operation kept fuel supplies going in the face of miles-long queues forming at retail fuel stations mid-last year as the state ran dry of forex to import petroleum.
The Washington-based International Monetary Fund’s Executive Board approved a 48-month extended arrangement under its Extended Fund Facility (EFF) last month with an amount of SDR 2.286 billion (about $ 3 billion) to Sri Lanka.
President Ranil Wickremesinghe, who spearheaded the IMF negotiations, specially mentioned the contributions made by the Indian finance minister Nirmala Sitharaman to assist his government.
PTI
