India pledges $450 million support to Sri Lanka

India has announced a major reconstruction assistance package worth $450 million to help Sri Lanka recover from the devastating impact of Cyclone Ditwah, External Affairs Minister S. Jaishankar said on Tuesday during his visit to Colombo. Acting as a special envoy of Prime Minister Narendra Modi, Jaishankar conveyed India’s commitment to stand by Sri Lanka as it rebuilds after one of the most destructive natural disasters in its recent history. He said the proposal marks a shift from emergency relief to long-term reconstruction and recovery.

According to Jaishankar, Prime Minister Modi’s message to the Sri Lankan leadership reaffirmed India’s role as a first responder and outlined a comprehensive rebuilding plan. The package includes $350 million in concessional lines of credit and $100 million in grant assistance, aimed at restoring damaged infrastructure and supporting recovery efforts in the worst-affected regions. The announcement follows the conclusion of India’s immediate humanitarian response under Operation Sagar Bandhu, launched soon after the cyclone struck. Under the operation, India supplied nearly 1,100 tonnes of

relief material, along with about 14.5 tonnes of medicines and medical equipment, to assist those impacted by the disaster. Jaishankar said Indian and Sri Lankan officials would now work closely to identify priority areas for reconstruction. Emphasising the urgency, he noted that the assistance package is being finalised in consultation with Colombo to ensure resources are directed where they are most needed. Highlighting the broader significance of the move, Jaishankar said the initiative reflects India’s “Neighbourhood First” policy and its commitment to being both a rapid responder and a long-term development partner in the region.

Beyond physical rebuilding, India also plans to support Sri Lanka’s economic recovery. Jaishankar pointed to tourism as a key sector and said India would continue encouraging travel to the island nation. He also noted that Indian investments could play an important role in strengthening Sri Lanka’s economy during this critical period. Sri Lanka, he said, is confronting fresh hardships just as it was beginning to recover from the economic crisis of 2022. The cyclone has added new pressures to an already fragile recovery process.

Jaishankar arrived in Colombo on Monday evening and was welcomed by Deputy Minister of Tourism Ruwan Ranasinghe. Cyclone Ditwah struck Sri Lanka on November 28 after forming over the Bay of Bengal, causing severe flooding and landslides across large parts of the country. Districts such as Colombo, Gampaha, Puttalam, Mannar, Trincomalee and Batticaloa were among the worst affected, while landslides in the central hill country devastated areas including Kandy, Badulla and Matale. Nearly 75,000 homes suffered damage, with around 5,000 completely destroyed.

The Sri Lankan government has since announced a wide-ranging compensation and rehabilitation programme, covering financial support for victims’ families, assistance for rebuilding homes in safer locations, and aid for education and essential household needs.

In terms of other ways to assist Sri Lanka, Jaishankar said India would encourage Indian tourism to Sri Lanka, as the island nation is a significant tourism economy.  “Similarly, an increase in Foreign Direct Investment from India can also boost your economy at a critical time. Our discussions will therefore keep in mind promoting a deeper cooperative relationship between our two countries,” he said.

Noting that this is a very difficult period for Sri Lanka, Jaishankar assured that India stands firmly with Sri Lanka more than ever before. “We have seen in the past the strong resolve and strength among the people of Sri Lanka to overcome challenges and to march ahead,” he said, adding that he was sure that Sri Lankans will once again demonstrate great resilience in recovering from this adversity. Foreign Minister Herath appreciated Jaishankar’s visit as the PM’s Special Envoy, saying his trip “underscores India’s steadfast solidarity with Sri Lanka in the aftermath of the adverse weather conditions caused by Cyclone Ditwah”.

Sri Lanka and India share a long-standing, multi-dimensional relationship rooted in geographical proximity, deep historical and cultural ties, shared values and expanding economic linkages, Herath said. “We deeply value India’s continued support in stabilising the Sri Lankan economy through multi-pronged assistance, including emergency financing and foreign exchange support, as well as $20.66 million extended to settle payments due for projects completed under existing lines of credit.

“We also sincerely appreciate India’s crucial role in Sri Lanka’s debt restructuring process, including as co-chair of the Officer Creditors Committee, which enabled the timely conclusion of discussions,” he said. Indian Army’s Engineer Task Force launching a 120-foot Dual Carriageway Bailey Bridge to restore road connectivity disrupted by Cyclone Ditwah in Jaffna, Sri Lanka.