ECONOMYNEXT – Relations between Sri Lanka and India have improved into a strategic partnership from a transactional relationship Foreign Minister G L Pieris as New Delhi is bankrolling the island to the tune of 2.4 billion US dollars amid a balance of payments crisis.

During the visit, Foreign Minister Peiris met with his counterpart Jaishankar and the National Security Advisor of India Shri Ajit Doval. Indian Foreign Secretary Shri Harsh Vardhan Shringla also called on the Foreign Minister.

“The relationship between India and Sri Lanka has evolved from a transactional relationship into a strategic partnership which is increasingly recognized by the people of Sri Lanka that India is a true friend whom Sri Lanka can rely on at all times.

Minister Peiris appreciated the financial assistance that the Government of India has extended to Sri Lanka to the tune of 2.4 billion dollars.

Sri Lanka is in the middle of a severe currency crisis after money was printed to suppress rates in a bid to create a ‘production’ economy backed by import controls.

Minister Pieris had discussed economic cooperation, power and energy cooperation, connectivity and tourism and said a recent agreement on oil tanks in Trincomallee showed closer integration between the two countries.

The prospects for renewable energy cooperation, particularly in wind and solar power sectors were also discussed at the talks.