Indian External Affairs Minister (EAM) Subrahmanyam Jaishankar stressed that helping Sri Lanka recover from its economic crisis is a matter of “neighbourhood first” for India.
Jaishankar’s Remarks
Speaking alongside his Sri Lankan counterpart Ali Sabry and President Ranil Wickremesinghe during a joint press conference in Colombo on Friday, Jaishankar expressed “India’s solidarity” with Sri Lanka. Vowing to help the South Asian island nation emerge from its crisis, the Indian EAM stressed that New Delhi will not leave Colombo to fend for itself.
In this regard, he said that the $4 billion in rapid assistance, including a warship carrying essential drugs, provided by India to Sri Lanka last year is a case in point. Additionally, he urged other Sri Lankan creditors to “take proactive steps” to facilitate the island country’s recovery.
Regarding Sri Lanka’s debt restructuring talks with the International Monetary Fund (IMF), Jaishankar noted that India has “extended financial assurances” to the IMF to “clear the way” for the country to move forward. The IMF has said that, as one of Sri Lanka’s biggest lenders, India must restructure its debts before the institution can release the $2.9 billion loan.
Moreover, the EAM vowed to “encourage” more investments in the Sri Lankan economy, especially in “core areas” like energy, tourism, and infrastructure. He further urged Colombo to create a “business friendly environment.”
Conveyed our commitment to increase investment flows to Sri Lanka to hasten its
— Dr. S. Jaishankar (@DrSJaishankar) January 19, 2023
economic recovery.
Look forward to my discussions with the leadership tomorrow morning.@alisabrypc, @DeSiripala, @banduladr, @kehelia_r, @kanchana_wij, @amanugama_dilum, @tharakabalasur1
Jaishankar also announced an agreement between the two countries in the field of renewable energy. Furthermore, he stressed the importance of India and Sri Lanka steadying their trade and, accordingly, called for the “use of Rupees settlement for trade,” adding that such a development is in both sides’ mutual interest.
Sri Lankan FM’s Statement
Ali Sabry said his discussion with Jaishankar involved a “broad range” of matters and is hopeful about India’s aid to help Sri Lanka overcome “the most serious crisis [it has] ever experienced.” He welcomed India’s “enormous support,” including the $4 billion assistance last year.
Expressing “profound gratitude” to the Indian government and people, Sabry thanked India for its “timely assurances,” especially since Sri Lanka is at a “crucial moment” in discussions with the IMF.
It was my privilege to welcome my friend Hon. EAM of India Dr. S. Jaishankar in Colombo. I thank him for the generous support of US$3.9B credit line last year and the assurances given to the IMF to restructure the debt.
— M U M Ali Sabry (@alisabrypc) January 20, 2023
🇱🇰is fortunate to have caring and considerate friends! pic.twitter.com/TVWkLjkYRt
He noted that both countries signed an MoU on Indian grant assistance for implementing high impact community development projects.
Sabry asserted that “India’s growth will be beneficial to the region and Sri Lanka, and expressed “great admiration” for New Delhi’s success at the global level, including its 2023 presidency of the G20.