India unveils measures to help SL economy recover

Strengthening defence, trade ties

- Rezaul H Laskar

NEW DELHI: India on Monday unveiled a slew of measures to boost development and physical and energy connectivity with Sri Lanka, with Prime Minister Narendra Modi assuring President Anura Kumara Dissanayake of continued support for Colombo's economic stabilisation efforts.

The Indian assistance, ranging from supply of LNG for power plants to grants for upgrading railways and a port and the launch of a new ferry service, were announced following talks between Modi and Dissanayake, who is on his first foreign visit since becoming president in September.

The moves signalled continuity under India's "Neighbourhood First" policy for Sri Lanka, which has been one of the largest beneficiaries of New Delhi's development cooperation programme. Besides being Sri Lanka's largest trade partner, India also continues to be the country's largest source of tourists and biggest source of investments. "We shall work towards establishing electricity grid connectivity and multi-product petroleum pipelines between both nations. The Sampur solar power project shall be accelerated. Additionally, LNG shall be supplied for Sri Lanka's power plants," Modi said at a joint media interaction, speaking in Hindi. He added both sides will also work towards finalising a trade deal.