India’s NITI chief tells SL to focus on value chains, services sector and tourism for recovery

As Sri Lanka is pressed to make hard decisions and has no room for any mistakes, the island nation should ideally take a fresh look at three main dimensions of its economic recovery, National Institution for Transforming India (NITI) CEO Parameswaran Iyer said.

While expressing confidence that it is not too late for Sri Lanka to make amends, Iyer called on the nation’s leadership to focus on revitalising and rationalising the existing value chains, ensuring that the service sector is strengthened and reviving tourism. 

“I suffice it to say that Sri Lanka possesses the potential to emerge as a stronger and more resilient economy,” said Iyer delivering the keynote address at Sri Lanka Economic Summit 2022, which was inaugurated last evening.

There is ample opportunity exists to leverage the advantage or proximity with India, the world’s third largest economy in PPP terms, said Iyer in a video message.

Iyer plays a significant role in catalysing India’s economic development, spearheading the nationwide Swachh Bharat (Clean India) Mission and also serving as the Global Lead for Strategic Initiatives in the World Bank’s Water Global Practice. As the island nation is exploring options that will ensure sustainable growth, Iyer pointed out that its strategic location has significance and is an important player in the Indian Ocean Rim Association and BIMSTEC.  He said it is in Sri Lanka’s interest to ensure freedom of navigation and have rule-based international order. He also said Sri Lanka must look at deepening its cooperation with India, as it has much to gain going forward. To start with, he noted that the present juncture gives the opportunity to re-establish connectivity between the two nations through air links and ferry services, connecting financial markets, the interconnection of the electricity grids, using Indian currency for trade and securing energy supplies.  With India looking to be a global economic powerhouse by 2047, the efforts between the two neighbouring nations should be complementary and could be directed toward the mutual benefit of both countries, he pointed out.   “We are ready and willing to collaborate with Sri Lanka. While we do so, we should be conscious of the challenging and often volatile global situation, especially the geopolitical and economic dimension, whichever direct bearing on the prospects for both India and Sri Lanka,” he said.  Iyer reiterated India’s commitment to Sri Lanka and affirmed it would continue to stand with the people of Sri Lanka in their process of economic recovery and efforts at achieving food and energy security as a democratic partner, which respects diversity. (SAA)