India Assisting Sri Lanka: Recognizing that “timing is everything” for Sri Lanka as it tries to deal with a severe economic crisis, the Indian system is working “overtime” to help the island nation. External Affairs Minister S. Jaishankar concluded his visit to the island nation on March 30.
“Things can’t be done at a usual rate in this situation.” Everything has to be rushed. Our system is putting in long hours. “What used to take weeks now takes days,” he added, adding that the $1 billion Indian credit line for vital imports, which was recently finalized, would be operationalized “very soon.”
The EAM, who was in Colombo for the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) meeting, told Colombo-based Indian media that while India is not Sri Lanka’s top creditor, it is the country’s nearest neighbor.
India is helping Sri Lanka by keeping all politics out of it
“We’re approaching it [the Sri Lankan crisis] like a reasonable, good neighbor, keeping politics out of it,” he said, citing the $400 million RBI currency swap, the $500 million loan deferment, the $500 million fuel credit line, and the more recent billion-dollar credit line that New Delhi has extended or facilitated this year.
“I can’t recall the last time we stepped up for a country like this.” We have aided countries in the aftermath of natural disasters and pandemics. “But this is different,” he admitted, acknowledging that Sri Lanka’s “needs are greater.”
Mr. Jaishankar noted that recent bilateral agreements, particularly one for private sector investment from India, have “strengthened Sri Lanka’s overall position.” “It’s a statement in and of itself that Sri Lanka’s closest neighbor is investing as much here.”
India has signed many long-awaited agreements since January, including a cooperative development of the Trincomalee Oil Tank Farms and energy projects in the north and east to be developed by the National Thermal Power Corporation and the Adani Group.
The spate of agreements, which some Sri Lankan critics have attributed to Indian financial assistance, indicates a departure from Mr. Jaishankar’s last visit to Sri Lanka in early 2021. Most discussions at the time revolved around the “slow-moving” progress of India-backed projects. He stated, “Today, there is a sense of teamwork and cooperation.”
Nonetheless, the Adani Group’s “backdoor entry” into the island’s energy industry, rather than the competitive bidding procedure mandated by Sri Lanka’s energy regulations, has been questioned by the island’s political opposition.
“We [Indian government] don’t go into private sector investment here,” Mr. Jaishankar replied when asked about the growing criticism. Trincomalee Farms was built on the basis of an intergovernmental agreement. NTPC is a power supply unit. Their [Sri Lankan] business is G2B (Government to Business). “Perhaps they’re trying to boost investor confidence here,” he speculated.
Concerns about Tamils
During his tour, the EAM met with Sri Lanka’s top leaders, senior ministries, and important opposition figures. While the “majority” of his bilateral discussion with President Gotabaya Rajapaksa was devoted to the economy, the EAM reported that numerous other topics of mutual interest were briefly discussed. This included the President’s explanation of his recent talks with the Tamil National Alliance (TNA), which represents Tamils in the north and east who have been harmed by the war. A delegation from the TNA afterward briefed the visiting Indian official on the encounter.
“They discussed four specific issues: the release of political prisoners, land, missing persons, and development. For a long time, the Tamils have been concerned about these issues. Specific, actionable items have been discovered and agreed upon by both parties. We believe it is a good idea to pursue things now that there is a possibility of action,” Mr. Jaishankar said.
“Taking action on these issues could have a positive impact on reconciliation and trust. But,” he said, alluding to the pending political solution, “that is not the end of the discourse.”
In a statement released on Monday, India said it “welcomed” the talks.
Summit on BIMSTEC
In addition, the Minister praised Sri Lanka for successfully holding the BIMSTEC meeting despite the pandemic’s problems. “The BIMSTEC charter has been completed after 25 years, and there is now a clear organizational framework.” This is critical since SAARC is stalled due to Pakistan,” he explained.
He also mentioned that members had created a “master plan for connection,” calling the advances “a huge step forward in strengthening the effectiveness and weight” of BIMSTEC.
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