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Posted 17 Dec 2024

2 min read

Key Highlights of the Meet

  • Debt Restructuring: Sri Lanka acknowledged India’s crucial assistance in its debt restructuring process through emergency financing worth USD 4 billion & also as a co-chair of the Official Creditors’ Committee (OCC).
    • OCC: In 2023, 17 countries formed OCC, co- chaired by India, Japan and France, to discuss the Sri Lankan authorities’ request for a debt treatment. 
    • The committee includes Paris Club creditors as well as other official bilateral creditors.
  • Trade and Investment Cooperation: Both appreciated the India-Sri Lanka Free Trade Agreement (ISFTA), signed in 1998.
    • Merchandise trade between them reached USD 5.5 billion in FY 2023-24. India is trade surplus.
    • Both agreed that a strategic shift from debt-driven models towards investment led partnerships.
  • Strategic & Defence Cooperation: Both committed to counter traditional and non-traditional threats, ensuring free, open, and secure maritime environment.
    • Sri Lanka, as India's closest maritime neighbour, has committed to prevent any territorial actions that is inimical to India's security or regional stability.
    • Sri Lanka acknowledged India for establishment of the Maritime Rescue and Coordination Centre in Sri Lanka to enhance maritime domain awareness.
  • Regional and Multilateral Cooperation: India supports Colombo Security Conclave, backing Sri Lanka's regional security initiatives.

Addressing the fisheries Issues

  • Issue: The prolonged dispute over fishing rights around Kachchatheevu Island in Palk Bay has been a source of tension between India and Sri Lanka.
  • A Humanitarian Approach: Both sides factoring the livelihood concerns agreed on the need to continue to address the issue in a humanitarian manner.
  • India’s Initiatives in Sri Lanka: Development of Point Pedro Fishing Harbour, rehabilitation of Karainagar Boatyard and cooperation in Aquaculture through Indian assistance.
  • Tags :
  • Bilateral Relations
  • Neighbourhood First Policy
  • India-Sri Lanka
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