India Offers $61.5 Million Grant to Modernize Kankesanthurai Port
October 05, Colombo (LNW): Indian External Affairs Minister Dr. S. Jaishankar informed his Sri Lankan counterpart, Vijitha Herath, that India has offered a grant of US$ 61.5 million to modernize the Kankesanthurai port. Additionally, payments for seven completed Line of Credit projects, totaling over US$ 20 million, could be converted into grants. This announcement was made during Dr. Jaishankar’s meeting with Minister Herath at the Ministry yesterday.
The Indian High Commission in Colombo stated that Dr. Jaishankar reaffirmed India’s commitment to advancing bilateral cooperation under the ‘Neighbourhood First’ policy and the SAGAR outlook. The visiting Minister also extended an invitation to Sri Lankan President Anura Kumara Dissanayake from Indian Prime Minister Narendra Modi to visit India at a mutually convenient date.
Dr. Jaishankar assured continued Indian support for Sri Lanka’s development through various projects prioritizing Sri Lankan interests. Notably, the Indian government has decided to donate 22 diesel locomotives to the Sri Lankan Railways.
During his meeting with President Dissanayake, Dr. Jaishankar discussed ongoing initiatives in energy production, fuel and LNG supply, solar electrification of religious sites, digital infrastructure, and health and dairy development. He highlighted these efforts as essential to driving economic sustainability and creating new revenue streams for Sri Lanka. He also expressed India’s willingness to expedite the conclusion of its bilateral Memorandum of Understanding (MoU) with Sri Lanka.
President Dissanayake assured Dr. Jaishankar that Sri Lankan territory would never be used in a way that threatens India’s security interests. He emphasized that India’s economic assistance is crucial to achieving his vision of a prosperous Sri Lanka and fulfilling the aspirations of its people. The President also discussed the potential for exporting renewable energy to India, which could help reduce production costs in Sri Lanka and generate additional resources. He recognized the contribution of Indian tourists to the Sri Lankan economy and noted its potential for further growth.
On the subject of Sri Lanka’s debt restructuring, Dr. Jaishankar recalled that India had been a strong supporter of Sri Lanka’s economic stability from the outset. India was the first country to offer financing assurances, enabling the IMF to finalize its Extended Fund Facility for Sri Lanka. Dr. Jaishankar confirmed India’s continued support in the Official Creditors’ Committee regarding Sri Lanka’s agreement with International Sovereign Bond holders.
The meeting also addressed the concerns of Indian fishermen detained in Sri Lanka. Dr. Jaishankar appreciated the release of 50 Indian fishermen the previous day but urged for further releases, including of their boats, and reconsideration of the heavy fines imposed on them. He emphasized that a humanitarian approach, focusing on livelihood issues, would provide a durable solution to the ongoing fishermen-related disputes between the two nations.
