Sri Lanka is currently facing the worst economic crisis in history. At this time of crisis, India stands out among the countries that came to help Sri Lanka. These days, These days, many people in this country see India as an angel who has come to help us. But is it true or an illusion?
In order to understand this correctly, we must examine not only what India gave us during this period but also what they took from us.
What India has given
1
In July 2020
The Reserve Bank of India (RBI) extended a similar swap facility — of $400 million — to help Sri Lanka cope with the impact of the first wave of the pandemic, and later provided a three-month roll over until February 2021, when the Central Bank of Sri Lanka settled it.
2
Nov 2021
During the recent visit in November 2021 by the Lankan Finance Minister Basil Rajapaksa to India to seek a financial package, Lanka has sought a $ one billion credit line for essential imports and a $ 500 million credit line for petroleum imports, Governor of Lankan Central Bank Ajith Nivard Cabraal told the Economic Times
3
13 Jan 2022
The Indian High Commission has confirmed the extension of USD 900 million financial facility including USD 400 million currency swap to Sri Lanka.
8 Jan 2022
India has offered a new Line of Credit (LOC) of USD 500 million to Sri Lanka for purchase of petroleum products.
4
02 Feb 2022
The Export-Import Bank (EXIM) of India and the Government of Sri Lanka today (February 02) signed a USD 500 million Short-Term Line of Credit (STLOC) agreement for the purchase of petroleum products.
5
12 March 2022
The Reserve Bank of India (RBI) has issued a notification to operationalize the US$ 500 million loan to Sri Lanka for Petroleum products.
https://www.newswire.lk/2022/03/12/us-500-million-loan-to-sri-lanka-from-reserve-bank-of-india-details-released/
17 March 2022
0317 Sri Lanka signed USD 1 billion credit line with India for procurement of food, medicines and other essential items, amid the island nation’s worsening economic crisis. https://www.dailymirror.lk/latest_news/Update-Sri-Lanka-signs-USD-1-billion-credit-line-with-India/342-233265
6
22 May 2022
USD 16 Million donation of Rice, milk power
https://asiaone.co.in/india-ships-donation-worth-16million-to-crisis-hit-sri-lanka/
7
11 Jun 2022
Sri Lanka and India’s EXIM Bank yesterday signed the agreement for a $ 55 million financing to procure urea fertilizer.
https://www.ft.lk/front-page/SL-signs-55-m-financing-deal-from-Indian-EXIM-Bank/44-736065
June 2022
US $ 40 Mn loan from EXIM Bank of India
https://www.dailymirror.lk/breaking_news/Sri-Lanka-ready-to-develop-KKS-harbour-with-US-40Mn-loan-from-India/108-240127
What India has taken
January 2021
Indian External Affairs Minister Dr. S. Jaishankar visited Sri Lanka
Comments on Government of Sri Lanka – TNA talks
During his last visit in January 2021, he conveyed a strong message to the Sri Lankan leadership that it was in “Sri Lanka’s own interest” that the expectations of the Tamil people are fulfilled. “That applies equally to commitments made by the Sri Lankan government on meaningful devolution, including the 13th Amendment.”
From article:
The 13th amendment became part of the Sri Lankan constitution as a direct result of the Indian intervention in 1987, under the countries’ accord. It proposed the establishment of a provincial council system and devolution of power for nine provinces in Sri Lanka. However, successive governments in Sri Lanka have not implemented it. India has been urging Sri Lanka to implement and enforce the amendment ever since the country’s war with Tamil separatists ended in 2009.)
https://www.thehindu.com/news/international/indian-power-project-replaces-chinese-venture-in-sri-lankas-northern-islands/article65269733.ece
2 Oct 2022
The Foreign Secretary visited Sri Lanka. India is expected to take stock of every infrastructure project India is running across the island nation & assess reasons for delay.
Push oil tank farm project in Trincomalee
Push for the West Container Terminal by Adani
Expansion of Colombo Security Conclave on marine security cooperation
The Tamil issue and 13th amendment to Sri Lanka Constitution
The Adani group sealed a deal with Sri Lanka to develop and run the strategic Colombo Port’s Western Container Terminal, is also exploring the possibility of investing in the island nation’s energy and wind sector in north eastern district of Mannar.
1) https://theprint.in/diplomacy/fs-shringla-will-ask-sri-lanka-about-slowing-indian-projects-while-chinese-are-moving-fast/744381/
2) https://www.wsws.org/en/articles/2021/10/12/insl-o12.html
On 6 Jan 2022
the agreements to develop Trinco Oil Tank Farm, terminated 2003 agreement. Sri Lanka CPC took control of tank farm after 35 years.
29 July 1987, government of SL & IN agreed to develop Trincomalee Oil Tank Farm.
7 Feb 2003, an agreement was signed to lease all 99 tanks to Lanka IOC for a period of 35 years. Yet, Lanka IOC had only made use of 14 tanks while the rest were decaying with time.
In 2017, an agreement was reached to lease all 99 tanks for 99 years through the MOU between Malik Samarawickrema-Sushma Swaraj.
India has clinched an agreement which allows the Indian Oil Corporation access to the British-built Trincomalee oil tank farm.
India also aims to develop a 100 MW power plant near Trincomalee.
1) https://www.newsfirst.lk/2022/01/06/trinco-oil-tank-farm-agreement-signed-sri-lanka-will-control-85-out-of-99-tanks/
2) https://www.bbc.com/news/world-asia-india-61490635
12 Jan 2022
India has planned to construct a shortest route to Trincomalee from Dhanushkodi after they take over the Trincomalee Oil Tank Farm, putting the sovereignty and safety of the country at stake, the Janatha Vimukthi Peramuna (JVP) said.
https://www.dailymirror.lk/latest_news/India-eyeing-to-construct-shortest-route-to-Trincomalee-from-Dhanushkodi-Hadunnetti/342-228925
19 Jan 2022
Sri Lanka’s Tamil MPs seek PM Modi intervention on political solution.
https://www.thehindu.com/news/national/sri-lankas-tamil-mps-seek-pm-modi-intervention-on-political-solution/article38288965.ece
27 Feb 2022
The shareholder, site lease and financing agreements for the Colombo Port’s West Container Terminal (WCT) were signed on Friday and the first instalment of a premium of US$ 15mn will be deposited with the Sri Lanka Ports Authority (SLPA) within days. The shareholder agreement was signed between the SLPA, India’s Adani Ports, local private sector partner John Keells Holdings (JKH) and CWIT. Adani Ports holds 51 percent of equity, JKH has 34 percent, and SLPA controls 15 percent.
https://www.sundaytimes.lk/220227/news/west-container-terminal-project-agreements-signed-with-adani-ports-other-partners-474508.html
11 Mar 2022
India signed a joint venture with Sri Lanka for a 100MW solar power plant in the island nation’s strategic eastern port district of Trincomalee ahead of signing a 1 billion US dollar credit line for crisis-hit country.
https://economynext.com/india-signs-jvsha-for-100mw-solar-power-plant-in-sri-lankas-strategic-tricomalee-91596/
11 March 2022
The Government last Friday (11) signed a Memorandum of Understanding (MoU) with India’s Adani Group allocating two large-scale renewable energy generation projects in Mannar and Pooneryn in the Northern Province to the company.
https://www.themorning.lk/renewable-energy-projects-adani-gets-mannar-and-pooneryn/
17 March 2022
As India prepares to sign off on a $1-bn emergency credit line to Sri Lanka for food and essential commodities during Lankan Finance Minister Basil Rajapaksa’s visit, it will push Colombo for the finalization of earlier proposals on the joint development of Palaly airport and Kankesanthurai harbour, both in the Jaffna peninsula close to the Tamil Nadu coast. Speaking to The Indian Express, an official said Delhi was “pressing” Colombo to quickly finalize the two “connectivity” projects at Palaly and Kankesanthurai. The two sides are also looking at restarting a ferry service between Thalaimannar in north-western Sri Lanka and Rameswaram in Tamil Nadu.
https://indianexpress.com/article/india/sri-lankan-minister-in-delhi-india-eyes-jaffna-airport-harbour-projects-7823403/
On 28 March 2022
Indian External Affairs Minister Dr. S. Jaishankar visited Sri Lanka.
- Total 6 MOU Signed as follows,
MOU on implementation of Sri Lanka Unique Digital Identity (SL-UDI) programme with GOI’s grant assistance;
MOU for providing Maritime Rescue Coordination Center;
MOU on implementation of Hybrid Power Projects in three Islands off Jaffna;
MOU on cooperation in development of Fisheries Harbours in Sri Lanka;
MOU for the establishment of Modern Computer Labs and smart boards with customized curriculum software in 200 schools in Galle District;
MOU between Sushma Swaraj Institute of Foreign Service and the Bandaranaike International Diplomatic Training Institute - The Tamil issue and 13th amendment to Sri Lanka Constitution
- Inaugurated the Jaffna Cultural Center
- Witness signing of MoU on implementation of grant assistance from India to promote Buddhist ties between India and Sri Lanka
http://www.adaderana.lk/news/81473/sri-lanka-and-india-sign-06-mous-on-diverse-areas
27 May 2022
India wants takes back control of Katchatheevu Island
https://www.wionews.com/india-news/explained-india-sri-lanka-conflict-over-katchatheevu-island-482603
17 Jun 2022
Adani Group secures permission to explore floating solar and wind power potential in SL’s territorial waters, According to the MOU signed between Adani Green Energy Limited (AGEL), a unit of Adani Group, and the Sri Lankan State entities last year, Adani is expected to conduct a comprehensive feasibility study into the possibility of generating floating solar and off-shore wind power in Sri Lanka’s territorial waters bordering the Northern Province.
https://www.dailymirror.lk/print/business-news/Adani-Group-secures-permission-to-explore-floating-solar-and-wind-power-potential-in-SLs-territorial-waters/273-239211
17 Jun 2022
India to ask for collateral to extend credit line for oil, The Export-Import Bank of India (EXIM Bank) would ask Sri Lanka for a collateral to ensure the future supply of oil, a senior CPC officer told The Island.
https://island.lk/india-to-ask-for-collateral-to-extend-credit-line-for-oil/
On 23 Jun
India government delegate visited Sri Lanka, to push for quicker implementation of its projects in Sri Lanka:
• Mannar-Pooneryn wind power plants granted to Adani Green Energy Limited;
• West Container Terminal in which Adani Ports has a controlling stake;
• the proposed joint venture solar power plant in Sampur with India’s National Thermal Power Corporation;
• the laying of a high-powered electricity cable between the two countries;
• 2 zones in the Mannar Basin for oil exploration
• the lands surrounding Trincomalee Harbour to be developed as an industrial zone.
1) https://island.lk/sjb-cries-foul-over-indias-demand-for-strategic-assets-here/
2) https://www.sundaytimes.lk/220626/news/instead-of-credit-lines-india-pushing-for-projects-here-487298.html
27 June
Green Light from Defence Ministry for Cargo Ferry Service between KKS and Tamil Nadu
https://www.newsfirst.lk/2022/06/27/green-light-from-defence-ministry-for-cargo-ferry-service-between-kks-and-tamil-nadu/
Sri Lanka to resume flights from Jaffna to India in July: Aviation Minister
https://www.business-standard.com/article/international/sri-lanka-to-resume-flights-from-jaffna-to-india-in-july-aviation-minister-122061900326_1.html
