India and Sri Lanka seek to reset ties
Part of: GS Prelims and Mains II – India-Sri Lanka ties; Bilateral relations
- Sri Lanka, India and Japan in 2019 had agreed to jointly develop East Container Terminal (ECT) project at the Colombo Port.
- However, in early July, Sri Lanka Prime Minister told that there was no final decision taken on the project, when opposition parties protested that Sri Lanka was giving away national assets to India.
- As per the 2019 tripartite Memorandum of Cooperation, Sri Lanka’s Port Authority was to retain 100% ownership of the facility.
Line of Credit to Sri Lanka
- Reserve Bank of India has agreed to a $400 million currency swap facility for Sri Lanka till November 2022.
- The Central Bank of Sri Lanka had sought the swap facility to help bolster the pandemic hit island nation’s foreign exchange reserves.
Do you know?
- Sri Lanka owes $960 million to India