Amidst an economic crisis in Sri Lanka which has seen people forced to ration food, India’s foreign secretary Subrahmanyam Jaishankar affirmed Indian support during these “difficult times”.
Greeted FM G.L. Peiris of Sri Lanka in the New Year. A reliable friend, India will support Sri Lanka in these difficult times. Agreed to remain in close touch.
— Dr. S. Jaishankar (@DrSJaishankar) January 6, 2022
The statement follows growing strains on Indo-Sri Lanka relations with Sri Lanka’s unilateral withdrawal from the East Container Terminal, which has since been handed over to China. In December, Sri Lanka’s finance minister Basil Rajapaksa met with officials from the Indian government to plead for further financial aid. During the meeting, the Indian government insisted on expanding several projects in the Tamil homeland.
Both countries agreed to a four-point economic plan which provided a much-needed currency swap to assist Sri Lanka during its financial crisis, also included “facilitating Indian investments in different sectors in Sri Lanka” and an agreement to develop the Trincomalee Tank Farm – a reversal from a previous Sri Lankan position.
Sri Lanka is expected to sign the Trincomalee oil tank farm deal in a month.