AKD, Modi agree to continue talks on ETCA

President Anura Kumara Dissanayake and Indian Prime Minister Narendra Modi seen here leaving for bilateral discussions yesterday      

• Agree to explore defence agreement between India and Sri Lanka

In what appeared to be reaffirmation, if not extension of the previous joint statement signed during the time of former President Ranil Wickremesinghe, India and Sri Lanka agreed during the visit of President Anura Kumara Dissanayake to explore the possibility of concluding a framework Agreement on Defence Cooperation between the two countries.   

The two leaders also agreed to continue discussions on the Economic and Technological Cooperation Agreement (ETCA), and enhance INR-LKR trade settlements between the two countries.   

President Dissanayake held talks with Indian Prime Minister Narendra Modi. According to the joint statement published on the website of the Indian External Affairs Ministry, both leaders underscored the importance of strengthening cooperation in the energy sector and facilitation towards timely implementation of ongoing energy cooperation projects between India and Sri Lanka.   

They agreed to take steps towards the implementation of the solar power project in Sampur and further augment its capacity as per the requirements of Sri Lanka, continue consideration of the several proposals which are in different stages of discussion including the supply of LNG from India to Sri Lanka, the establishment of a high-capacity power grid interconnection between India and Sri Lanka, cooperation amongst India, Sri Lanka and UAE to implement a multi-product pipeline from India to Sri Lanka for supply of affordable and reliable energy.   
The development of offshore wind power potential in Palk Straits, while prioritising environmental protection including fauna and flora.   

Acknowledging the ongoing cooperation in the development of Trincomalee Tank Farms, both leaders decided to support the development of Trincomalee as a regional energy and industrial hub, according to the statement.   
President Dissanayaka appreciated India’s continued support for the implementation of projects despite the ongoing debt restructuring. He further acknowledged India’s decision to extend grant assistance for projects that were originally undertaken through Lines of Credit, thereby reducing the debt burden of Sri Lanka.   

President Dissanayake thanked Prime Minister Modi for India’s support in stabilising the Sri Lankan economy through unparalleled and multi-pronged assistance including emergency financing and forex support worth USD 4 billion. He acknowledged India’s crucial assistance in Sri Lanka’s debt restructuring process, including as co-chair of the Official Creditors’ Committee (OCC), as being instrumental in finalising the debt restructuring discussions in a timely manner. He further thanked the Government of India for extending financial assistance of US $ 20.66 million to settle payments due from Sri Lanka for projects completed under existing Lines of Credit thereby significantly reducing the debt burden at a critical time. The leaders instructed officials to finalise discussions on the bilateral MoU on Debt Restructuring.   

The leaders underlined the importance of greater connectivity and acknowledged the presence of complementarities between the two economies which could be harnessed for economic development and growth of both countries.   

While expressing satisfaction at the resumption of the passenger ferry service between Nagapattinam and Kankesanthurai, they agreed that officials should work towards the early recommencement of the passenger ferry service between Rameswaram and Talaimannar.   
Explore the possibility of jointly working on rehabilitation of Kankesanthurai port in Sri Lanka, which will be implemented with grant assistance from the Government of India.   

Acknowledging the ongoing cooperation in the development of Trincomalee Tank Farms, both leaders decided to support the development of Trincomalee as a regional energy and industrial hub.   

President Dissanayake reiterated Sri Lanka’s stated position of not permitting its territory to be used in any manner inimical to the security of India as well as towards regional stability. The two leaders agreed to foster cooperation in hydrography, provision of defence platforms and assets to augment Sri Lanka’s defence capabilities; intensify collaboration through joint exercises, maritime surveillance, and defence dialogue and exchanges.