Prime Minister Narendra Modi will visit Sri Lanka in April, and he is expected to sign several new agreements with the neighbouring nation, media reports said.
Sri Lankan Foreign Minister Vijitha Herath told Newswire that Narendra Modi will undertake an official visit to Sri Lanka in early April this year.
The Sri Lankan Minister said Modi is expected to inaugurate the Sampur Power Plant during the visit.
He made the announcement while addressing the Sri Lankan Parliament on Saturday.
India Sri Lanka Trade Relationship
India has traditionally been among Sri Lanka’s largest trade partners, and Sri Lanka remains among the largest trade partners of India in the SAARC, as per the Indian High Commission in Sri Lanka.
According to the Department of Commerce (DoC), the Merchandise trade between India and Sri Lanka reached USD 5.5 billion in FY 2023-24, with India’s exports amounting to USD 4.1 billion and Sri Lanka’s exports reaching USD 1.4 billion.
Bilateral trade was also supported by various Lines of Credit and a Credit facility for the procurement of essential items. To further broaden the scope of the FTA and to strengthen the Rules of Origin, an Economic and Technology Cooperation Agreement (ETCA) covering both goods and services was proposed.
The negotiations resumed after 5 years pursuant to the visit of former President Ranil Wickremesinghe in July 2023, wherein it was decided to undertake discussions on ETCA. 14 rounds of negotiations have been conducted so far, with the latest round of discussion held in July 2024 in Colombo.
In addition to being Sri Lanka’s largest trade partner, India is also one of the largest contributors to Foreign Direct Investment (FDI) in Sri Lanka, with a cumulative figure of approx USD 2.2 billion till 2023.
The main investments from India are in the areas of energy, hospitality, real estate, manufacturing, telecommunication, banking and financial services. Going forward, the priority areas would be to expedite important projects in crucial sectors such as energy, ports & shipping, renewable energy, defence supplies, etc.
(With inputs from IBNS)
