India’s assistance to Sri Lanka has made a “sea of difference” to the Sri Lankan economic situation, helping the country to move on from" the problems of the immediate past”, said Sri Lankan Foreign Minister G L Peiris, who is on a three-day visit to India. He added significantly that Colombo’s relations with China aren’t “at the expense of India”, and termed New Delhi’s concern “not logical.”

“There’s no doubt whatsoever that Indian support at this critical juncture has made a world of difference. It has helped us to tide over the immediate difficulties which were obviously acute,” Peiris said in an interview to The Hindu.

Two countries exchanged several high-profile visits in the last four months, including Sri Lankan Finance Minister Basit Rajapaksa’s visit last month, and signed several crucial agreements, some of those were pending for years.

On the other hand, New Delhi announced much-needed assistance—including $1.5 billion lines of credit for the purchase of essentials, and fuel, helping Sri Lanka which has been going through a severe economic crisis. Apart from that, India also helped to release the pressure off Sri Lanka’s forex by deferring repayment by Sri Lanka of a $550 million loan. [Read More]

All of this, including the deals of the Trincomalee Oil Farm and the West Coast Terminal Port, Peiris said has “engendered a degree of confidence which we didn’t see in the immediate past.”  

Exactly a year ago, the ties between the two suffered a blow when Colombo unilaterally canceled the tripartite agreement on the East Coast Terminal (ECT) of the strategic important Colombo port, where India and Japan were to develop the port. A year after, it appears, at least for now, the two countries have managed to put those things behind.

Sri Lanka is a part of China’s Belt and Road Initiative, and Beijing’s assistance has greatly helped Sri Lanka in developing its airports, ports, and other important infrastructure, Peiris said when asked about his country’s relations with China and New Delhi’s concerns over it.

“That (relations with China) is not at the expense of India. And we have repeatedly assured that under no circumstances would we allow any part of Sri Lanka’s territory territorial waters are aspirants to be utilized in any manner that is detrimental to India or to any other friends,” he was quoted as saying by The Hindu, terming New Delhi's apprehension “just a kind of fear,” with “no logical basis.”

Calling the fishing issue a “real flashpoint” and “constant irritant” in the bilateral relations, Peiris stressed to have some actions of “immediate nature” as there is goodwill on both sides and also the realization.
He also added that there has been discussion about retraining Indian fishermen with regard to methods of deep-sea fishing discussions among fishermen’s cooperative societies on the two sides and other long-term solutions.

On Monday, he had held extensive discussions on the issue with Indian External Affairs Minister S Jaishankar.

On the Tamil issue and India’s role in it, he said, “India has taken interest [in the past]. But the principal responsibility obviously is of Sri Lanka, and Sri Lankan political parties must engage primarily with the Sri Lankan government.” Currently, a committee has been drafting suggestions on comprehensive constitutional reforms and is expected to submit it in two months.

Peiris, however, made a caveat, saying, “whatever is done must be backed up by a sufficient consensus in the country [a veiled reference to consent by majority Sinhala Buddhists, who in the past have averse to granting powers to local authorities in Tamil dominated north and east].”   (SAM)