Categories: Economy

Debt ridden Sri Lanka knocks on India’s door for help in eight sectors

<p>
<strong>Amid an acute financial crisis Sri Lanka is looking to enhance economic cooperation with India and woo investors to stabilize its situation. The focus will be particularly on eight sectors– energy, refineries, electricity grid, ports, real estate, tourism and Information and Communications Technology. Sri Lanka’s envoy to India Milinda Moragoda said in an interview to <a href="https://economictimes.indiatimes.com/news/india/sri-lanka-seeks-to-integrate-economy-with-india-focuses-on-8-sectors/articleshow/89143001.cms">the Economic Times</a>.</strong></p>
<p>
"India is the biggest economy in the region and Lanka wants to benefit from the Indian growth story," he said. "Lanka can be a springboard for the Indian investors in the region. Our idea is to integrate our economy into the Indian economy for a win-win situation," the news organization quoted Moragoda as saying.</p>
<p>
Besides being the second largest trading partner of Sri Lanka, India is also one of the largest contributors to foreign direct investment into the island nation. A number of leading companies from India have invested and established their presence in Sri Lanka. FDI from India amounted to about $ 1.7 billion between 2005 and 2019. The main investments from India are in the areas of petroleum retail, tourism & hotel, manufacturing, real estate, telecommunication, banking and financial services.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/sri-lanka-averts-international-loan-default-but-citizens-are-not-happy-144531.html">Sri Lanka averts international loan default but citizens are not happy</a></strong></p>
<p>
Earlier this month, Sri Lanka’s Cabinet gave its approval to India for jointly developing the World War II era Trincomalee oil tank farm. The deal will greatly help India gain strategically. Importantly, it will also help India balance China’s presence in the island nation.</p>
<p>
This oil farm facility built by the British as a refuelling station, has a storage capacity of about 1 million tonnes, which is significantly higher than Sri Lanka’s demand.</p>
<p>
Under this fresh agreement, Lanka IOC, the subsidiary of Indian Oil will have 49 per cent stake in the joint development of the oil farm while the remaining 51 per cent stake will remain with Ceylon Petroleum Corporation.</p>
<p>
Sri Lankan economy is currently facing the twin challenge of fast eroding foreign exchange reserves and surging inflation. Sri Lanka’s President Gotabaya Rajapaksa declared a state of economic emergency in September last year.</p>

IN Bureau

Recent Posts

VINBAX 2024: Vietnam-India bilateral army exercise concludes at Kaushalya Dam

The fifth edition of the historic Indo-Vietnam Joint Field Training Exercise, VINBAX-2024, successfully concluded its…

12 hours ago

India-Russia strengthen defence ties at 22nd Working Group meeting on military technical cooperation

The 22nd meeting of the India-Russia Working Group on Military technical cooperation and defence industry…

12 hours ago

“I want to have strong representation of India at World Nuclear Exhibition 2025”: Sylvie Bermann

Sylvie Bermann, President of the World Nuclear Exhibition expressed confidence in India's nuclear supply chain…

13 hours ago

PoJK: Joint Awami Action Committee protests against government following new ordinance, many injured

Joint Awami Action Committee core member Shaukat Nawaz Mir has condemned the attack of police…

14 hours ago

PM Modi meets 31 world leaders, heads of organisations during his 3-nation foreign visit

Prime Minister Narendra Modi participated in 31 Bilateral Meetings and informal interactions with global leaders…

16 hours ago

India- Australia conduct 11th Indian Air Force-Royal Australian Air Force Air Staff Talks

India and Australia conducted the 11th edition of the Indian Air Force and Royal Australian…

16 hours ago