India gives Lanka US$ 450 million credit for infrastructure development and fighting terrorism; seeks steps to promote reconciliation
Posted on November 29th, 2019

Courtesy NewsIn.Asia

New Delhi, November 29 ( Indian Prime Minister Narendra Modi told the visiting Sri Lankan President Gotabaya Rajapaksa that India would extend a fresh credit line of US$ 400 million for infrastructural and other development projects and an additional US$ 50 million to fight terrorism.

Modi also said that India trusts that the Rajapaksa government will take steps to address the aspirations of the Tamils and implement the 13 th Amendment of the Lankan constitution which devolves power to the provinces.

In his reply President Gotabaya Rajapaksa said: India has always assisted Sri Lanka to enhance our capabilities in intelligence and counterterrorism. We look forward to continuous support in this regard.”

Referring to the Easter Sunday terror attacks which claimed the lives of over 250 persons in April, President Rajapaksa said, Sri Lanka had to rethink its national security strategies. Assistance from India in this regard would be most appreciated and PM Modi’s assurances on the matter are encouraging, the President said further.

He said Sri Lanka’s cooperation with India is multifaceted, with priority given to security-related matters.

We will continue to work closely with India to ensure that Indian Ocean remains a zone of peace. We also discussed how Sri Lanka and India could work together in economically-important matters. As India emerges to be among world’s growing economies, I discussed with the Prime Minister how Sri Lanka could benefit out of certain economic sectors where India is strongly positioned.”

President Rajapaksa appreciated the Indian Prime Minister for his positive responses to the many of the initiatives he had proposed to enhance Sri Lanka’s economy.

He also expressed his gratitude for PM Modi for offering USD 400 million credit of line to improve Sri Lanka’s infrastructure and economy.

Prime Minister and I also discussed how India could assist us in trade between the two countries,” President Rajapaksa added.

Referring to the Indian fishermen’s issue, the Lankan President said that all Indian boats in the custody of Sri Lanka will be released.

He then extended an invitation to PM Modi to visit Sri Lanka as the first head of State to arrive in Sri Lanka since his election as the President of Sri Lanka.

In his opening speech, Prime Minister Modi said: I am pleased to welcome President Gotabaya Rajapaksa and his delegation to India. I heartily congratulate the President for his decisive victory in the election. I congratulate the people of Sri Lanka for the smooth election process. The strength and maturity of democracy in Sri Lanka is a matter of great pride and joy.”

It is an honor for us that President Rajapaksa chose India for his first foreign visit and gave us a chance to welcome him in India within two weeks of assuming office. It symbolizes the strength and dynamism of friendly relations between India and Sri Lanka. It is also a sign of how much importance both countries attach to these relations. We look forward to working closely with President Rajapaksa for the progress of both countries and peace, prosperity and security in our entire common region.

The mandate that you have received expresses the aspirations of the Sri Lankan people for an organized, strong and prosperous Sri Lanka. In this regard, India’s good wishes and cooperation are always with Sri Lanka. A stable, secure and prosperous Sri Lanka is not only in India’s interest but also in the interest of the entire Indian Ocean Region,” Modi said.

In line with my Government’s Neighborhood First” policy and SAGAR doctrine, we prioritize our relations with Sri Lanka. The security and development of our two countries are inseparable. Therefore, it is natural that we should be aware of each other’s safety and sensibilities.”

Today the President and myself had a very good and fruitful discussion on bilateral relations and international affairs of mutual interest. We have decided that together we will strengthen the multi-faceted partnership and cooperation between the two countries. I have assured the President of India’s commitment to a development partnership with Sri Lanka. As always, this cooperation will be in accordance with the priorities of the people of Sri Lanka. A new $ 400 million line of credit will give a boost to infrastructure and development in Sri Lanka.”

I am confident that the Sri Lankan economy will benefit as well as this Line of Credit will also accelerate the Project Cooperation of mutual benefit between the two countries.”

We are delighted that under the Indian Housing Project, 46,000 houses have been constructed for the internally displaced in the Northern and Eastern Provinces of Sri Lanka. There is good progress in the construction of 14,000 houses for Tamils of Indian origin in the Up-Country region. I am also pleased that we have agreed to use the previously announced $ 100 million credit line for solar projects in Sri Lanka early.”

There was a good discussion between President and me on 20 community development projects and other people-centric projects issued by India in Sri Lanka on the basis of grants in education and infrastructure.”

India has always opposed terrorism in all its forms and also expected action from the international community against other forms of terrorism, including cross-border terrorism. On the occasion of Easter this year, terrorists in Sri Lanka launched brutal attacks on the diversity of mankind and the valuable heritage of symbiosis. I went to Sri Lanka immediately after the elections in India to express India’s unwavering support in the Sri Lankan fight against terrorist and extremist forces. I have discussed in detail with the President Rajapaksa for mutual security and to further strengthen mutual cooperation against terrorism. Sri Lankan police officers in major Indian institutions are already receiving the benefit of counter terrorist training. I am happy to announce a special Line of Credit of 50 million dollars to Sri Lanka to combat terrorism.”

Issues affecting the livelihood of fishermen were also discussed. We agreed that we will continue with a constructive and humane approach in this matter.


On the need for ethnic reconciliation, Modi said: We also openly exchanged views on reconciliation in Sri Lanka. President Rajapaksa told me about his inclusive political outlook on ethnic harmony. I am confident that the Government of Sri Lanka will carry forward the process of reconciliation, to fulfil the aspirations of the Tamils for equality, justice, peace and respect. It also includes the implementation of the 13th amendment. India will become a trusted partner for development throughout Sri Lanka including North and East.”

I once again welcome President Rajapaksa to India. His visit will strengthen our mutual relations. And our cooperation will promote development in both countries and prosperity, peace and stability in the region,” Modi reiterated.

One Response to “India gives Lanka US$ 450 million credit for infrastructure development and fighting terrorism; seeks steps to promote reconciliation”

  1. Dilrook Says:


    SL is already in debt crisis and now it is worsened by another $450 million loans. This is Mahadenamutta economic policies.

    Quote – Modi also said that India trusts that the Rajapaksa government will take steps to address the aspirations of the Tamils and implement the 13 th Amendment of the Lankan constitution which devolves power to the provinces.

    There you go. Patriots are now dead so don’t expect any protest!

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