India, Sri Lanka sign landmark defense pact
What's the story
India and Sri Lanka signed their first-ever defense cooperation pact, a landmark in their diplomatic ties. The agreement was reached during PM Narendra Modi's recent visit to Colombo, where he met Sri Lankan President Anura Kumara Dissanayake. Modi highlighted the inter-linking of security interests of both countries and thanked Dissanayake for his understanding toward India's concerns.
Energy collaboration
Trincomalee to be developed as energy hub
Energy cooperation was a major focus of Modi-Dissanayake talks. The two leaders signed an agreement to develop Trincomalee as an energy hub and jointly inaugurated the Sampur solar power project to boost Sri Lanka's clean energy capacity. They also signed a grid interconnectivity deal, which could enable Sri Lanka to export electricity to India in the future.
Support for recovery
Modi reaffirms India's commitment to Sri Lanka's economic recovery
Modi also reiterated India's support for Sri Lanka's efforts at economic recovery. Both countries signed 10 agreements, including on digital transformation, health, and debt restructuring. "Whether it was the terrorist attack of 2019, the COVID pandemic, or the recent economic crisis, we have stood with the people of Sri Lanka in every difficult situation."
Financial assistance
India extends financial aid to Sri Lanka
India has so far extended more than $4bn in financial assistance to help Sri Lanka out of its economic crisis in 2022. Modi announced India had converted loans worth over $100 million into grants in the past six months. He also announced a reduction in interest rates and a support package of around 2.4bn Sri Lankan rupees for social and economic development in Sri Lanka's eastern provinces.
Renewable energy initiative
Modi announces solar rooftop systems project for religious institutions
Modi and Dissanayake also virtually launched a project to provide solar rooftop systems to 5,000 religious institutions across Sri Lanka. The $17 million initiative will benefit Hindu, Buddhist, Christian, and Muslim shrines and generate a total of 25MW of green power. Dissanayake thanked India for supporting Sri Lanka during difficult times, and assured Modi that it wouldn't allow any activity on its soil that could compromise India's security.