- India’s support was critical for Sri Lanka last year after it almost ran out of dollars and sank into a financial crisis that left it struggling to fund essential imports, including fuel and medicine.
- Sri Lanka is likely to discuss energy, power and port projects as India tries to push forward stalled initiatives with its crisis-hit neighbour.
The foreign minister stated on Monday that Sri Lanka is likely to discuss energy, electricity, and port projects during a presidential visit to New Delhi the next week as India attempts to move delayed initiatives with its crisis-hit neighbour forward. Sri Lanka needed India’s assistance last year when it nearly ran out of dollars and fell into a financial crisis that left it unable to pay for imports of goods like fuel and medication.
India provided about $4 billion in rapid assistance between January and July 2022, including credit lines, a currency-swap arrangement and deferred import payments, and sent a warship carrying essential drugs for the island’s 22 million people. Sri Lanka will now focus on grid connectivity between the two countries, port development and renewable energy projects, largely in the northern part of the island, when President Ranil Wickremesinghe visits India from July 21 for two days, Foreign Minister Ali Sabry told reporters.
“Trincomalee energy-hub development, port development, possible refinery – basically, we are discussing with India,” Sabry said, referring to a strategically important natural harbour on Sri Lanka’s northeast shore.
The two countries want to expand and develop the Trincomalee Harbour into a major port. Regional rivals India and China have long battled for influence in Sri Lanka, which is strategically located in the Indian Ocean. Sabry said both China Harbour Corp and Sinopec were keen to invest in Sri Lanka. Sinopec has already been short-listed for a $4 billion refinery near southern Sri Lanka’s Hambantota port.
Source: Reuters