India and Sri lanka have agreed to forge ahead a new economic partnership that will help Indian investors put in money in the Island Nation, and correct the trade imbalance.
During a meeting with his visiting Sri lankan counterpart Ranil Wickremesinghe on Tuesday, Prime Minister Narendra Modi sought support for Indian investors who are keen to participate in lanka’s economic development, especially in infrastructure, energy and transport sectors. The two leaders also discussed about the Comprehensive Economic Partnership Agreement (CEPA) to boost economic activities between the two sides.
Hoping to fast-track the long-pending CEPA, Wickremesinghe suggested having a framework that could be agreed in-principle by the end of this year based on which a final agreement can be put in place by mid-2016. The lankan PM said enhancing bilateral trade with India would help his country reach the goal of generating one million jobs in Sri lanka over the next five years.
Modi said India would like to see the bilateral trade grow and become more balanced for lanka and offered to strengthen connectivity between the two countries. Modi also mentioned currency swap arrangement as an important development.
This was Wickremesinghe’s first overseas trip after becoming PM for the fourth term. In January, lankan President Maithripala Sirisena too had chosen India as his first overseas destination after being elected to office in January. PM assured Wickremesinghe of India’s continuing commitment to its development partnership -- in infrastructure, railways, energy, community development projects, agriculture, capacity building, science and technology, space and civil nuclear field.
On the fishermen issue, both sides agreed to wait for the outcome of talks between fishermen’s associations of both sides to find a solution in a time-bound manner. “I conveyed to him that this should be seen as a humanitarian issue that affects livelihoods. I informed him of the steps we are taking to encourage Indian fishermen to take up deep sea fishing,” Modi said. A day before arriving in New Delhi, Wickremesinghe had ordered release of 16 Tamil Nadu fishermen as a goodwill gesture.
On the process of reconciliation for the lankan Tamils, Wickremesinghe assured India that his Government was looking at devolution of power to them under the provisions of the Constitution. Modi hoped that the country will achieve “genuine reconciliation” and development so that all people including the Tamil community can live a “life of equality, justice, peace and dignity” in a united Sri lanka.
The two leaders also agreed to intensify cooperation in combating terrorism and work together for security and stability in the maritime neighbourhood. Four pacts were signed relating to Orbit frequency co-ordination of SAARC Satellite, supply of medical equipments for lanka’s 200 bed hospital in Vavuniya, agreement to help lanka set up emergency ambulance services and renewal of MoU regarding Indian grant assistance for implementation of small development projects.