News

News

Rajiv Gandhi A’pura-Trinco highway
India has offered a new US$ 100 million creditline to Sri Lanka for rural infrastructure projects, among which will be the refurbishment of the Anuradhapura-Trincomalee road which will be named the Rajiv Gandhi Amity Highway, said the joint communique issued yesterday in New Delhi following President Chandrika Kumaratunga's official visit to the country.

The projects will also see Indian engagement in setting up vocational training institutes ranging from the south to the north-east of the country. It will also include construction of rural feeder roads, water supply development schemes and community development projects.

This US $ 100 million credit-line is over and above the US $ 150 million offered for the purchase of petroleum products signed last month. During discussions on the Defence Cooperation Agreement, it was resolved that a bi-lateral Defence Cooperation Agreement and the MoU on the Rehabilitation of the airfield in Palaly, Jaffna would be signed between the two governments on "mutually convenient dates". The Indian side also agreed to refit the Sri Lankan naval ship ' Sayura ' and underwrite the costs.

On the question of the controversial Sethusamudram canal project mooted by India, it was agreed that an "exchange of views" on the economic and technical aspects "in relation to Sri Lanka" be arranged, the communique stated.

On the peace process, India re-iterated its stand that "any interim arrangement on administration should be an integral part of an enduring final settlement that maintains the unity and territorial integrity of Sri Lanka, and ensures the safety, well-being and prosperity of the people".

India thanked Sri Lanka for its support for its candidature for a permanent seat at the UN Security Council. Both India and Sri Lanka agreed to cooperate in international forums like WTO. President Kumaratunga during her talks with Indian busijness leaders outlined Sri Lanka-Pakistan Free Trade Agreement.

The Indian business leaders lauded the FTA, pointing out that it would not only enhance economic relations between Sri Lanka and Pakistan but also benefit Indian commerce and industry. President Kumaraunga had assured that discussions with Pakistan were proceeding and a successful conclusion was expected and that the Pakistani Prime Minister was scheduled to visit Sri Lanka shortly.

Top

Back to News