India's $4 Billion Lifeline to Sri Lanka: Jaishankar Stresses Mutual Responsibility

By siliconindia  |  Thursday, 06 March 2025, 09:05:30 AM IST

India's $4 Billion Lifeline to Sri Lanka: Jaishankar Stresses Mutual Responsibility
In a firm reiteration of India's commitment to regional cohesion, External Affairs Minister S. Jaishankar underscored India's assistance towards Sri Lanka's economic revival in his speech at Chatham House, London-based think-tank. He underscored that India's forward-looking assistance assisted the island nation through a virulent economic and political crisis in 2022.
Jaishankar added that while the international community more or less kept quiet during Sri Lanka's crisis, India moved forward with a package of economic assistance worth over $4 billion nearly twice the size of the International Monetary Fund (IMF) package. "When Sri Lanka had a very severe financial crisis, while the rest of the world more or less sat on its hands, we actually came forward with a package". But, although we are a bigger economy and generally philanthropic, we have interests like any country. So, we hope our neighbors will understand that and be sensitive to our concerns as well", he said.
The visit by the minister is the first from a foreign visitor after Sri Lanka's National People's Power (NPP) administration, headed by President Anura Kumara Dissanayake, came into power on September 23, 2024. Jaishankar reiterated that India's Neighbourhood First Policy and the SAGAR (Security and Growth for All in the Region) vision will continue to be the direction of bilateral ties, stressing responsibility and cooperation for mutual benefit.
Sri Lanka, a crucial sea neighbor in the Indian Ocean Region, is critical to India's strategic endeavors. In April 2022, the country announced its first-ever sovereign default after independence in 1948, precipitating large-scale civil disturbances and the resignation of then-President Gotabaya Rajapaksa. The crisis left Sri Lanka struggling with shortages of critical items, electricity blackouts, and rising inflation.
India's rapid response came in the form of crucial supplies of food, petroleum products, and medicines, as well as huge financial assistance for economic stabilization. The Ministry of External Affairs emphasized that Jaishankar's visit is a testimony to the mutual commitment to strengthening the historic friendship between the two nations for the benefit of all.
Earlier, in December 2024, Jaishankar had met President Dissanayake during the latter's state visit to New Delhi. During their talks, Jaishankar was confident that negotiations with Prime Minister Narendra Modi would lead to closer ties and regional stability.
Jaishankar had also visited Colombo in October, holding high-level talks with Sri Lankan authorities to find ways for closer cooperation in various fields.
India's unwavering support, based on historical ties and strategic interests, is an expression of its vision of a secure and prosperous neighborhood. Jaishankar's words reinforce the precept that while India remains a reliable partner, regional cooperation needs to be two-way, with both countries cooperating for long-term growth and resilience.
The visit ends with a reaffirmation of efforts to advance bilateral ties, in keeping with the spirit of solidarity that characterizes the India-Sri Lanka relationship. As Sri Lanka sets out on the road to recovery, India's unwavering support remains a pillar of the island nation's reconstruction process.

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