With his visit as the first Indian Prime Minister since 1987, he is happy with the fruitful discussions with the incumbent Sri Lankan government and they would be helpful in further strengthening the existing ties between the two neighbours, said Indian Prime Minister Narendra Modi at the Presidential Secretariat this morning (13 March).

During this welcoming event accorded by Sri Lankan President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe, Premier Modi said that this visit opens new opportunities.

Mr. Modi added that an agreement has been entered into for Lanka Indian Oil Company (LIOC) and the Ceylon Petroleum Corporation (CPC) to jointly develop the oil tank farm at China Bay in Trincomalee and that a joint task force would be appointed for this.

This is expected to make Trincomalee a regional fuel production hub, added Premier Modi.

While pointing out that the main bridge between the two neighbours was the economic cooperation, Narendra Modi added the trade had increased hugely between the two countries during the last two decades.

India has decided to provide a fresh lie of credit valued at USD 318 million to develop Sri Lanka’s railways sector to be used to rehabilitate the island railway lines.

At the same time, the Indian Reserve Bank and the Central Bank of Sri Lanka have agreed to sign a currency swap agreement, said the Indian Prime Minister while adding that this would assist to stabilize the Sri Lankan Rupee.

Furthermore, visa on arrival would be introduced to Sri Lankan tourists to India from 14 April this year and that steps would also be taken to strengthen cooperation between the Customs of both countries and minimize not duty obstacles to simplify trade, assured Prime Minister Modi.

He also said that India is prepared to begin direct flights between Colombo and New Delhi and that he is prepared to deeply discuss and resolve the fishermen’s issue between the countries.

The Indian Premier also pointed out the significance of setting up the Sampur coal power plant with Indian assistance.

Away from China, towards India

Prime Minister Modi’s views amply displayed the affinity of the incumbent government towards India rather than China and India’s attraction towards Sri Lanka due to the island’s geo-strategic importance.

Economic analysts point out that in the recent past China had been keen in intervening in economic activities in Sri Lanka due to the island’s geo-strategic location within the Indian Ocean region and that this had sidelined India.

It is an open secret that the former government’s agreement for outright ownership of several hectares of land to China from the Colombo Port City Project had raised concerns in India.

Prime Minister Modi’s Sri Lanka visit has enabled India to regain the position it had lost in Sri Lanka, say analysts.

Meanwhile, the Chinese funded Colombo port City project has been temporarily suspended and China has conveyed its deep concerns to the Sri Lankan government.