Sri Lanka urges more Indian investments to strengthen economy
POWER & RENEWABLE ENERGY

Sri Lanka urges more Indian investments to strengthen economy

Sri Lanka has invited more Indian investments in various sectors, including ports, infrastructure, energy and power, and manufacturing after New Delhi announced a $900 million loan to Colombo to restore foreign reserves and food imports during the crisis in the nation.

Basil Rajapaksa, Finance Minister of Sri Lanka, is in talks with the Minister of External Affairs, S Jaishankar and discussed projects and investment plans by India that would strengthen the economy.

The Minister urges Indian investments and assures that a conducive environment will be provided to encourage the investment plans.

Both the Ministers discussed that the modernisation of Trincomalee Oil Tank Farms would attract foreign investors.

Sri Lanka had signed an agreement with India for the redevelopment of the World War II-era oil tank farm in the eastern port district of Trincomalee and will boost economic and energy partnership.

According to the sources, India's help of $400 million under the South Asian Association for Regional Cooperation (SAARC) currency swap arrangement and deferral of Asian Clearing Union (ACU) settlement of $515.2 million by two months are major assistance in Sri Lanka's currency shortage crisis.

The Ministers reviewed the progress of the ongoing extension of the Indian credit facility of $1 billion for importing food and other essential items.

WA Wijewardena, an economist and former Sri Lankan Central Bank Deputy Governor, said that India's economic package had provided some relief to Sri Lanks, tough measures and a bailout from the International Monetary Fund (IMF) was required to prevent the downfall of the economy.

Sri Lanka is facing the worst crisis of foreign exchange after the Covid-19 pandemic hit tourism and remittances. By the end of December, the reserve position had increased by just one month's imports over $1 billion.

Image Source

Also read: Post Brexit, Netherlands looking to strengthen ties with India - Gold

Also read: India, IRENA inks pact to bolster its renewable energy partnership

Sri Lanka has invited more Indian investments in various sectors, including ports, infrastructure, energy and power, and manufacturing after New Delhi announced a $900 million loan to Colombo to restore foreign reserves and food imports during the crisis in the nation. Basil Rajapaksa, Finance Minister of Sri Lanka, is in talks with the Minister of External Affairs, S Jaishankar and discussed projects and investment plans by India that would strengthen the economy. The Minister urges Indian investments and assures that a conducive environment will be provided to encourage the investment plans. Both the Ministers discussed that the modernisation of Trincomalee Oil Tank Farms would attract foreign investors. Sri Lanka had signed an agreement with India for the redevelopment of the World War II-era oil tank farm in the eastern port district of Trincomalee and will boost economic and energy partnership. According to the sources, India's help of $400 million under the South Asian Association for Regional Cooperation (SAARC) currency swap arrangement and deferral of Asian Clearing Union (ACU) settlement of $515.2 million by two months are major assistance in Sri Lanka's currency shortage crisis. The Ministers reviewed the progress of the ongoing extension of the Indian credit facility of $1 billion for importing food and other essential items. WA Wijewardena, an economist and former Sri Lankan Central Bank Deputy Governor, said that India's economic package had provided some relief to Sri Lanks, tough measures and a bailout from the International Monetary Fund (IMF) was required to prevent the downfall of the economy. Sri Lanka is facing the worst crisis of foreign exchange after the Covid-19 pandemic hit tourism and remittances. By the end of December, the reserve position had increased by just one month's imports over $1 billion. Image Source Also read: Post Brexit, Netherlands looking to strengthen ties with India - Gold Also read: India, IRENA inks pact to bolster its renewable energy partnership

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