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Instead of credit lines, India pushing for projects here
View(s):Official statements refer to investment partnership in infrastructure and renewable energy among others
A four-member Indian team that held talks in Colombo during a whirlwind visit on Thursday indicated that, rather than offer more credit lines to Sri Lanka, it was time to push for quicker implementation of Indian projects.
The delegation was led by Foreign Secretary Vinay Kwatra and included top Indian Finance Ministry officials. Separate talks were held with President Gotabaya Rajapaksa and Prime Minister Ranil Wickremesinghe. The team was also shopping for new Indian-led projects, the Sunday Times learns.
Among the ventures India is keen to fast-track are the Mannar-Pooneryn wind power plants granted to Adani Green Energy Limited; the West Container Terminal in which Adani Ports has a controlling stake; and the proposed joint venture solar power plant in Sampur with India’s National Thermal Power Corporation. In January, India and Sri Lanka also signed a new agreement allowing a joint venture to develop a majority of tanks in the oil tank farm in Trincomalee.
It is unlikely that more credit will be secured from India for fuel, sources also revealed, adding that there could be a US$ 1bn swap but not for oil. India was also facing difficulties in procuring oil supplies, it was said. Official statements also said that, at a meeting with the Premier, “both parties highlighted the importance of promoting India-Sri Lanka investment partnership including in the fields of infrastructure, connectivity, renewable energy and deepening economic linkages between the two countries”.
Prime Minister Wickremesinghe this week told Parliament–a day before the Indian visit–Sri Lanka had taken loans amounting to US$ 4bn under the Indian credit line. “We have requested more loan assistance from our Indian counterparts,” he said. “But even India will not be able to continuously support us in this manner. Even their assistance has its limits. On the other hand, we, too, must have a plan to repay these loans. These are not charitable donations.”
Without further credit lines for fuel, Sri Lanka is now receiving the final two shipments under Indian assistance.
Meanwhile, the International Monetary Fund (IMF) is expected to issue its staff-level statement tomorrow following the visit this week by a nine-member delegation that started bailout talks with the Government.
President Rajapaksa’s office said on Friday that the IMF was “ready to assist” Sri Lanka but gave no further details while Prime Minister Wickremesinghe said he was hopeful of IMF support by the middle of next month.
End-of-mission statements usually convey preliminary findings after a country visit. The delegation was led by Peter Breuer, Senior Mission Chief, and Masahiro Nozaki, Mission Chief.
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