Sri Lankan Finance Minister Basil Rajapaksa will soon visit India, Foreign Minister G L Peiris has confirmed on Monday, adding he would hold discussions with senior Indian ministers in New Delhi on a wide range of bilateral issues. The upcoming visit comes at a time when Colombo is involved in an ongoing fertilizer row with China and also facing a severe economic crisis. 

“The Indian High Commission in Colombo and the Sri Lankan High Commission in New Delhi are finalizing details of the visit,” Peiris was quoted as saying by Colombo Gazette. However, he clarified that Colombo would not look to more loans from India in this visit. 

Basil, a member of Sri Lanka’s powerful ruling Rajapaksa family, was inducted into the cabinet a few months back. Despite his all efforts, the Sri Lankan economy has all but worsened only. The visit, the first by any senior minister in recent months, would be keenly watched in both countries as it comes almost eight months after the Sri Lankan government had unilaterally canceled the East Coast Terminal Port (ECT) of Colombo port in February this year.  

Speaking to reporters in  Colombo, Peiris said Basil Rajapaksa would also meet Indian Prime Minister Narendra Modi during his stay in New Delhi. “We have strong relations with India. It is not focused on just one area,” he said.

He also said that India had always offered assistance to Sri Lanka when the need arose. Surprisingly, he added that Colombo would not look to obtain more loans from India during the visit. Basil Rajapaksa would, instead, he said, would seek more investments from India and focus on seeking more Indian tourists. 

Importantly, last month, Finance Secretary SR Attyagle had confirmed they were in touch with Indian officials for a $500 million credit line and hoped for the early signing of the deal. His statement came days after Indian Foreign Secretary Harsh Varshan Shringla undertook a four-day tour of the country in early October. 

As the economic crisis deepened in Sri Lanka, people have recently started worrying about the supply of essentials like fuel and medicines. Despite repeated assurances from the government, many state oil firms, with billions in payment dues, are now struggling to obtain letters of credit.

Reports have also shown that the country's foreign reserves exchange has shrunk to a new low.   

The visit would also be significant as it comes amid a diplomatic row between Sri Lanka and China after the former canceled a fertilizer deal with a Chinese company, citing contamination issues. In response, the Chinese Embassy in Colombo blacklisted a state-run bank in Sri Lanka and had asked Chinese businesses not to accept LOCs from the bank. 

Following the cancelation of the fertilizer row, New Delhi moved quickly, deployed its air force plane and navy ships to transport nano-fertilizer to Sri Lanka. The move had obviously irked the Chinese, which has gained enormous footprints in Sri Lanka.

(SAM)