India, Sri Lanka Agree To Enhance INR-LKR Trade Settlements
The meeting between Indian Prime Minister Narendra Modi and Sri Lankan President Anura Kumara Dissanayake on December 16, 2024, marked a pivotal moment in the bilateral relations between India and Sri Lanka. This meeting was significant as it was Dissanayake's first overseas visit since assuming office, emphasizing the importance he places on strengthening ties with India.
President Dissanayake assured that Sri Lanka would not allow its territory to be used for activities detrimental to India, reflecting a commitment to regional stability and security.
Both leaders expressed appreciation for the India-Sri Lanka Free Trade Agreement (ISFTA) and discussed enhancing trade settlements in Indian and Sri Lankan rupees. Modi highlighted ongoing support from India, which includes a $5 billion line of credit and grants aimed at aiding Sri Lanka's economic recovery.
The leaders agreed to initiate projects such as an electricity grid connection and a multi-product petroleum pipeline, which are expected to bolster investment and commercial interactions between the two nations.
Several agreements were signed during the meeting, including pacts on avoiding double taxation and enhancing capacity building and training initiatives. The discussions also covered cooperation in areas like digital identity projects, renewable energy, and education.
The contentious issue of fishermen's rights was addressed, with both leaders agreeing on the need for a humanitarian approach to find sustainable solutions.
Modi announced plans to finalize a defence cooperation agreement soon, underscoring the importance of security ties amid concerns over China's growing influence in the region.
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