From G Sudhakar Nair

Colombo

India and Sri Lanka on Friday signed four agreements during Narendra Modi’s maiden visit to the country, the first bilateral tour by an Indian premier in 28 years, with the Prime Minister announcing a slew of measures aimed at resetting ties with the strategic neighbour.

Prime Minister Modi, who arrived here this morning on the final stop of his three-nation tour of Indian Ocean island nations, met Lankan President Maithripala Sirisena and discussed bilateral and issues of regional importance.

“I am conscious of the significance of this visit. This is the first stand alone bilateral visit by an Indian Prime Minister since 1987,” Modi said at a joint press meet with Sirisena, who was in India last month on his first foreign trip after assuming office in January.

The Prime Minister said his meeting with Sirisena has been very productive. It “gives me confidence and optimism about the future of our relations,” Modi said.

The two sides signed four agreements on visa, customs, youth development and building Rabindranath Tagore memorial in Sri Lanka.

“The agreement today on cooperation between our customs authorities is a step in that direction. It will simplify trade and reduce non-tariff barriers on both sides,” he said.

Modi said the progress made by two countries reflects “our shared commitment to stronger economic cooperation”.

“Our trade has seen impressive growth over the past decade. I am aware of your concerns about trade with India. As I said in Delhi, we will try and address them,” he said.

Modi said India stands ready to help Trincomalee become a petroleum hub and announced that New Delhi will provide a fresh Line of Credit of up to USD 318 million for the railways sector in Lanka.

“This will be used to procure rolling stock, and to restore and upgrade existing railway track,” he said.

The Prime Minister also said that the Reserve Bank of India and the Central Bank of Sri Lanka have agreed to enter into a Currency Swap Agreement of USD 1.5 billion to help keep the Sri Lankan rupee stable.

He lauded the efforts of newly elected President Sirisena and assured him of all help from India.

“We stand with you in your efforts to build a future that accommodates the aspirations of all sections of society, including the Sri Lankan Tamil community, for a life of equality, justice, peace and dignity in a united Sri Lanka.

“We believe that early and full implementation of the 13th Amendment and going beyond it would contribute to this process,” said Modi, who is here as part of his three-nation tour of Indian Ocean island nations that took him to Seychelles and Mauritius.

India to help Lanka develop regional petro hub; IOC signs pact

From G Sudhakar Nair

Colombo

India will help Sri Lanka develop its Trincomalee town as a regional petroleum hub and Indian Oil Corp has reached a joint-development pact with Ceylon Petroleum Corporation, Prime Minister Narendra Modi said today.

The agreement as well as a task force to implement it were announced after a meeting between Modi and Sri Lankan President Maithripala Sirisena here.

“Today, Lanka IOC and Ceylon Petroleum Corporation have agreed to jointly develop the Upper Tank Farm of the China Bay Installation in Trincomalee on mutually agreed terms.

“A Joint Task Force will be constituted soon to work out the modalities. India stands ready to help Trincomalee become a regional petroleum hub,” Modi said.

Lanka IOC, IndianOil’s subsidiary in Sri Lanka, is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates retail petrol and diesel stations in the island nation.

Lanka IOC operates about 150 petrol and diesel stations in Sri Lanka and its major facilities here include an oil terminal at Trincomalee, Sri Lanka’s largest petroleum storage facility and an 18,000 tonnes per annum capacity lubricants blending plant and state-of-the-art fuels and lubricants testing laboratory at Trincomalee.

Presently, it holds a market share of about 43.5 per cent.

Modi, who reached here this morning in the last leg of his three-nation tour, further said he was looking forward to “early commencement of work on the ground in the Sampur Coal Power Project”.

“This landmark project would meet Sri Lanka’s energy needs,” he added.

Modi also announced a fresh Line of Credit of up to USD 318 million for the railways sector, which can be used to procure rolling stock, and to restore and upgrade existing railway track.

Modi said that the ocean economy held “enormous promise” for both the countries.

“Our decision to set up a Joint Task Force on Ocean Economy is a significant step, especially because of our proximity,” he added.

Modi said that economic ties are “a key pillar of relationship between the two countries and their bilateral trade has grown impressively over the past decade.

“Our trade has seen impressive growth over the past decade. I am aware of your concerns about trade with India. As I said in Delhi, we will try and address them.

“The agreement today on cooperation between our customs authorities is a step in that direction. It will simplify trade and reduce non-tariff barriers on both sides.

“We are not just looking at addressing problems. We are also focusing on new opportunities.

RBI, CBSL agree on USD 1.5 billion currency swap deal

From Sudhakar Nair

Colombo

Reserve Bank of India has agreed for a USD 1.5 billion currency swap agreement with the Sri Lankan central bank to help the island nation keep its currency stable, Prime Minister Narendra Modi said today.

The agreement was announced after a meeting between Modi and Sri Lankan President Maithripala Sirisena here.

“The Reserve Bank of India and the Central Bank of Sri Lanka have agreed to enter into a Currency Swap Agreement of USD 1.5 billion. This will help keep the Sri Lankan rupee stable,” said Modi, who reached here early this morning on the last leg of his three-nation tour that included Seychelles and Mauritius.

The currency swap pact assumes significance as the Sri Lankan rupee has been under pressure for quite some time.

Despite attempts made by the central bank, the currency has been losing value since the beginning of this year.

At the current valuation, one Indian rupee is equivalent to 2.12 Sri Lankan Rupee. It has lost almost three per cent value in comparison to the Indian rupee so far in 2015.

Modi is the first Indian Prime Minister to come to Sri Lanka on a standalone bilateral visit since 1987.

Last month, Sirisena visited India on his first foreign trip as Sri Lankan President.

Modi said that economic ties are “a key pillar of relationship between the two countries” and the bilateral trade has grown impressively over the past decade.

“Economic ties are a key pillar of our relationship. The progress we have made reflects our shared commitment to stronger economic cooperation,” he said.

“I am aware of your concerns about trade with India. As I said in Delhi, we will try and address them,” the Prime Minister said.

© Copyright PTI. All rights reserved. Republication or redistribution of any PTI content, including by framing or similar means, is expressly prohibited without their prior written consent.