Sri Lanka (Commonwealth Union)_ The arrival of India’s Finance Minister, Nirmala Sitharaman, marks a pivotal moment in fortifying the robust economic relationship between India and Sri Lanka. Her three-day visit, at the invitation of the Sri Lankan government, is aimed at elevating the already thriving economic ties between the two nations. Scheduled engagements include participation in the ‘Naam 200’ event in Colombo, along with scheduled meetings with President Ranil Wickremesinghe and Prime Minister Dinesh Gunawardena.
This multifaceted visit is anticipated to impart fresh momentum to the economic and commercial collaborations between India and Sri Lanka. Notably, a significant milestone is the revival of bilateral discussions to elevate the prevailing Free Trade Agreement (FTA) to a more comprehensive Economic and Technology Cooperation Agreement (ECTA) after a hiatus of five years. The recent 12th round of negotiations held from October 30th to November 1st in Sri Lanka reflected progress, with both sides resolving nine issues, as stated by India’s commerce and industry ministry.
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An essential highlight of the visit is the Business Summit themed ‘Enhancing Connectivity: Partnering for Prosperity,’ slated for today. A high-powered Indian business delegation spanning various industries will participate, alongside prominent Indian industry bodies like the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI). This delegation, led by Sanjiv Puri, President-elect of CII and ITC Managing Director, underscores India’s substantial investments in Sri Lanka.
The influx of Indian industry leaders in Sri Lanka aims to actively pursue investment opportunities, which is pivotal for both countries’ mutual benefits and Sri Lanka’s economic recovery. India’s commitment to bolster Sri Lanka’s economic resurgence through mutually beneficial investments has been repeatedly emphasized, acknowledging India’s role as the primary source of investments and tourists for Sri Lanka. The Finance Minister has directed Indian industry representatives to foster enduring and fruitful commercial relationships, aligning with the goal of mutually beneficial investment opportunities. This summit not only serves as a platform for new partnerships but also encompasses the participation of prominent Sri Lankan businesses.
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India, as Sri Lanka’s largest trading partner, is deeply engaged in ongoing negotiations for the Economic and Technology Cooperation Agreement (ETCA), aimed at broadening the scope of economic and commercial activities between the two nations. Additionally, Minister Nirmala Sitharaman disclosed her intention to witness the signing of an MOU on solar electrification of religious sites in Sri Lanka, the inaugural project under Prime Minister Narendra Modi’s announced USD 15 million grant assistance for strengthening Buddhist ties. Sitharaman’s proactive involvement led to the swift facilitation of USD 4 billion in multiple forms of assistance to Sri Lanka in 2022. Furthermore, her advocacy on behalf of Sri Lanka with the IMF during their economic and financial difficulties resulted in India being the first bilateral creditor to provide written assurance, paving the way for the IMF package.
Ms. Nirmala Sitharaman, who is on a three-day official visit to Sri Lanka, paid a visit to the Chief Prelates of the Malwathu and Asgiriya Chapters. Most Ven. Thibbatuwawe Sri Siddhartha Sumangala Thero, the Chief Prelate of the Malwathu Chapter, expressed gratitude to the Indian Finance Minister for her financial support during Sri Lanka’s economic crisis and praised the strong cultural links and shared heritage between the two countries. The Indian minister also visited some religious sites in the country, including the revered Jaya Sri Maha Bodhi in Anuradhapura and Sri Dalada Maligawa in Kandy, and paid homage to the Sacred Tooth Relic.
